The valuation of XRP (XRP) spiked by 16% in less than a day following the announcement on March 19th, that Ripple’s legal issues with the US Securities and Exchange Commission (SEC) could soon be resolved. However, XRP has since witnessed a decline in its gains, losing its footing under the crucial $2.50 benchmark.
The ongoing rally of XRP seems to be primarily driven by the spot market. XRP hit its record high of $3.40 on January 16, propelled by a surge in spot buying volumes that fueled a parabolic rally spanning several weeks.
Current market data from Velo indicates a similar trend emerging in the XRP market. The aggregated spot tape CVD, an indicator that monitors the net variance between aggressive buying and selling activities across multiple exchanges, has turned positive for the first time since late January. This indicates an increase in buying pressure, likely triggering a price surge.
Despite this, a negative aggregated premium on open interest implies that the futures market continues to bet against an increase in XRP’s price. As such, the current market condition is a battle between bullish spot traders and bearish perp traders.
An anonymous crypto trader, CrediBULL Crypto, suggests that XRP may be heading for a new all-time high above $3.40 in the coming weeks. However, it’s likely that the cryptocurrency will retest its immediate lows around $2 before commencing an upward trend.
From a technical standpoint, XRP could potentially avoid a $2 dip if prices manage to secure a bullish close above $2.65, setting up a positive break of structure (BOS) for the token that could persuade futures traders to adopt a bullish outlook along with spot traders. Conversely, a close below $2.23 would invalidate XRP’s recent price action, reinstating the prevailing bearish trend.
Despite the bullish activity in the spot market, XRP prices remain in a state of flux without a definitive trend shift. The market continues to hover in a state of sideways consolidation, with bulls and bears battling for dominance.
