XRP Price is Holding Firm Above $2 as Traders Position for a Potential Rebound

Ripple (XRP) has endured volatile price action over the past week. XRP price closed the last three days of the week with 17% losses, plunging as low as $2.06 on Saturday

Crypto traders are preparing for a busy week ahead as the U.S. Congress is set to continue the confirmation process of Trump’s appointed SEC chair, Paul Atkins.

Atkins, a more crypto-friendly candidate, is in line to replace Gary Gensler, who has faced criticism from the crypto industry for his administration’s stance on digital assets.

If Atkins’ confirmation faces rejection, leading to a no vote, traders could react accordingly, with pessimistic traders placing Countertops in anticipation. A strong sell-off could propel Ripple (XRP) price below the $2 support in the seven-day outlook.

On the derivatives front, significant activity was observed in the past 24 hours, with traders placing optimistic bets on a potential rebound of XRP price.

CoinGlass’ latest data reveals a 125.93% surge in XRP options volume to $7,540, while options open interest also saw a 149.56% increment to $978,100.

This massive increase in volume and interest suggests that investors are actively positioning for a substantial move in either direction, making them key to watch for the week ahead.

As of 31 March, 08:48 (GMT+8), XRP price is trading at $2.09, showing resilience as it trades above the $2 support.

If positive momentum persists, kicking off with a breakout above the Keltner Channel (KC) middle line at $2.30, it could propel XRP towards the upper boundary of the channel at around $2.58.

A decisive close above the $2.30 level could create the impetus for a $2.50 test in the coming seven days.

However, traders should be aware of the potential risks. A breakdown below the lower KC boundary at $2.0273 may invalidate this bullish outlook.

If the bears sink XRP price below this level, it could open the door for further liquidations, potentially driving price towards the $1.90 zone.

Moreover, traders should note the 12-hour liquidation data, which shows a preference for long positions. Despite the total liquidations reaching $5.63 million, long positions were liquidated to a greater extent with $3.86 million compared to $1.78 million in short positions.

This imbalance suggests that traders were more confident in their long trades, which reduces the likelihood of a major sell-off.

Despite this optimism, it’s crucial to consider the overall trend. The Parabolic SAR dots are still spotted above the candlesticks, indicating a continuation of the bear trend from the previous time frame.

Furthermore, there has been a slowdown in trading activity, with volume decreasing by 15.03% to $7.27 billion. This lull in market participation could hamper any rapid price movements.