XRP price has faced downside pressure in the wake of the White House Crypto Summit, but a shift in derivatives market trends suggests a potential bullish rebound in the near term.
Ripple (XRP) Finds Support at $2.30 as White Summit Disappoints
Ripple (XRP) price experienced additional downside pressure on March 8, closing the week in a lukewarm state. The White House Crypto Summit generated significant media attention throughout the week, prompting traders to take strategic positions.
Ripple CEO Brad Garlinghouse’s confirmed attendance had raised hopes that the event could yield positive regulatory developments for altcoins, potentially sparking another breakout similar to when former President Trump included XRP in the crypto strategic reserve on Sunday.
However, the outcome of the event was underwhelming, as no significant regulatory clarity emerged, leaving doubts about congressional approval of executive orders. Additionally, bearish macroeconomic data—particularly the U.S. Non-Farm Payroll (NFP) report showing rising unemployment—exerted further downward pressure, preventing XRP from extending gains post-summit.
Market volatility in response to these events saw XRP price dip another 2% on Friday, March 7, bringing total weekly losses to 13%. However, bulls staged a mild recovery, triggering a 2% upswing to the $2.34 level at press time on Saturday, March 9.
Short Traders Reduce Exposure as White House Summit Ends with no Sell-the-News Triggers
Ripple price initially plunged another 3% before stabilizing above $2.30, but key derivatives market metrics suggest that the majority of short traders had positioned for a much deeper correction on Friday. As these traders adjust their overleveraged positions, XRP price could inadvertently score mild gains over the weekend.
5 critical XRP derivatives trading metrics from Coinglass reinforce this narrative.
Firstly, trading volume witnessed a significant 45% decline, a common precursor to momentum shifts. With XRP posting its first green candle in four days, the volume contraction signals a imminent directional shift from last week’s dominant bearish sentiment.
Additionally, open interest declined by 6%, approximately during the day while prices rose 2%, suggesting capital outflows from short traders closing their positions rather than fresh capital entering on the long side. This development points to a short squeeze scenario where shorts covering positions could drive a gradual price recovery.
Another crucial indicator is the long/short ratio, which remains in favor of long positions across major exchanges. Binance XRP/USDT accounts show a long/short ratio of 3.6642, while OKX traders hold a 2.71 long/short ratio, reinforcing that bullish sentiment is returning despite the broader market’s hesitation.
Lastly, the options market also reflects this shift. While options volume has dropped 73%, options open interest has increased by nearly 19%, indicating that traders are repositioning rather than exiting entirely. This repositioning suggests confidence among options traders that XRP could hold the $2.30 level and potentially advance higher without additional bearish catalysts.
XRP Near-term Outlook
The prevailing derivatives data suggests that most short traders had anticipated a much larger price correction following the White House Summit. However, with no major post-event euphoria materializing, these traders are unlikely to book amplified gains in the near term.
The data indicates that short traders are now repositioning, which could help XRP price hold the $2.30 support level or even advance toward $2.50 in the absence of additional bearish catalysts. Should bullish momentum continue building over the weekend, a potential retest of $2.50 remains within reach, setting the stage for further upside in the coming week.
XRP Price Forecast: XRP Eyes $2.50 Amid Support Rebound
XRP price remains resilient at the $2.35 level despite recent selling pressure, with technical indicators suggesting a potential rebound toward $2.50.
The daily chart displays price action consolidating within the Keltner Channel, with the middle band at $2.47 acting as the nearest resistance. A decisive breakout above this level could open the door for a retest of $2.98, aligning with the upper boundary of the channel.
The Bull-Bear Power (BBP) indicator currently sits at -0.1796, reflecting bearish sentiment.
However, historical data suggests that similar BBP levels have preceded bullish reversals, particularly when coinciding with price stabilization near key support. If buyers sustain momentum, a shift into positive BBP territory could confirm a breakout scenario.
Conversely, failure to hold above the $2.30 support level would expose XRP to further downside, potentially testing the lower Keltner Channel boundary at $1.95. The Volume-Weighted Average Price (VWAP) at $2.35 is a crucial pivot level; a strong close above it would strengthen the bullish case.
With leverage likely playing a role in upcoming moves, traders should watch for increasing open interest and funding rate shifts as key signals of directional conviction.
Frequently Asked Questions (FAQs)
The primary resistance level for XRP is $2.47, with a breakout above this mark potentially leading to $2.98.
Falling open interest and a rising long/short ratio indicate that short traders are closing positions, reducing selling pressure on XRP.
If XRP fails to hold $2.30, it may decline toward $1.95, but derivatives data suggests strong buying support at current levels.
ibrahim
Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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