Ripple (XRP) Price: Is the Path to Double Digits Finally Opening Up?

TLDR

• XRP price surged 18% to $2.24 after inflation data strengthened expectations for a Fed rate pause
• Derivatives markets show bullish sentiment with rising open interest and 2.49 long/short ratio
• Traders eyeing potential breakout above $2.50, with possible targets at $2.76 and $3
• Ripple vs. SEC lawsuit reportedly nearing resolution, removing a key obstacle for XRP
• Franklin Templeton joins other firms in race for XRP ETF, adding institutional interest

Ripple’s digital asset XRP has shown strong recovery in recent days, climbing from lows near $1.90 to reach $2.24. This 18% price jump came as market participants grew more confident about the Federal Reserve’s next move. Let’s look at what’s driving this momentum and where XRP might be headed.

The recent price increase coincided with several positive developments. New inflation data showed that prices are rising at a slower pace than expected. The February Consumer Price Index (CPI) came in at 2.8%, down from January’s 3%.

XRP
XRP Price

This cooling inflation has changed how traders view the Fed’s upcoming decision. According to CME Group’s FedWatch tool, there’s now a 99% chance the Federal Reserve will keep interest rates unchanged at its March 21 meeting.

This outlook marks a shift from earlier concerns. Last week’s disappointing jobs report had raised fears about a possible recession. Those worries now appear to be fading as the inflation picture improves.

XRP traders are responding to this changing landscape. The token opened at $2.24 on Thursday, its highest level this week. This represents an 18% rise from Tuesday’s low of $1.90.

Market data shows growing confidence among traders. Derivatives statistics reveal open interest has increased by 3.48% to $3.05 billion. This suggests traders are holding their positions rather than closing them.

Options trading for XRP has seen even stronger growth. Open interest in options jumped 10.69% to $1.37 million, showing more traders are betting on future price movements.

The ratio of long positions to short positions also tells an interesting story. On Binance, the long/short ratio for XRP stands at 2.49. OKX shows a similar pattern with a 2.14 ratio. This means more than twice as many traders are betting on price increases versus decreases.

Technical Analysis

Technical analysis shows XRP attempting to break above the $2.34 resistance level. This price point lines up with the 20-day exponential moving average (EMA). If buyers push through this barrier, the next target could be $2.60.

For a stronger rally, XRP would need to overcome resistance near $2.50. This would require more trading volume to sustain the upward momentum. If successful, traders see potential for XRP to reach the $3 mark.

On the downside, if XRP fails to hold above $2.24, selling pressure could return. The lower support level sits around $1.92, where buyers might step in again.

Beyond market conditions, XRP faces a key legal situation. The long-running lawsuit between Ripple and the SEC appears to be approaching resolution. Recent reports suggest the case may be wrapping up soon.

The delay reportedly centers on a $125 million fine proposed by the SEC. There’s also discussion about restrictions on Ripple selling XRP to institutional investors. A resolution would remove a major obstacle that has limited XRP’s growth.

Despite being delisted from some U.S. exchanges due to the lawsuit, XRP has maintained strong interest. Franklin Templeton has joined Grayscale, WisdomTree and others in pursuing an XRP ETF. This signals growing institutional interest in the asset.

Ripple is also expanding its business operations. The company is working on a DFSA license to enable blockchain-powered crypto payments. These developments could support higher valuations if the legal situation is resolved favorably.

The combination of improving macro conditions and possible legal clarity has created a more positive outlook for XRP. Many traders believe these factors could help XRP reach double-digit prices in the coming year.

For now, XRP continues to navigate between technical resistance and support levels. The token is consolidating between $2.03 and $2.27 as traders await the next major catalyst.