XRP Price Surges 18% to Reclaim $2.24 as Market Recovery Phase Begins

Ripple (XRP) price surged to $2.24 on Thursday, marking its highest opening price this week. As the latest U.S. Consumer Price Index (CPI) figures indicated

Ripple (XRP) price surged to $2.24 on Thursday, marking its highest opening price this week as the latest U.S. Consumer Price Index (CPI) figures indicated easing inflation and traders began pricing in a Federal Reserve rate pause.

As the CME Group’s FedWatch tool suggests a 99% likelihood that the Fed will leave interest rates unchanged in its upcoming March 21 meeting, market attention is shifting toward the possibility of fresh capital inflows into crypto markets.

Despite the bullish macroeconomic backdrop, Ripple price faces resistance near $2.50, and a substantial increase in trading volumes will be required to sustain a rapid advance. But if market optimism intensifies, XRP could extend its rally toward the critical $3 mark.

Ripple (XRP) traders expect fresh inflows as CME Group signals a 99% chance of a Fed rate pause

Ripple (XRP) price has shown a strong recovery over the past 48 hours, in response to a series of positive macroeconomic developments. On Thursday, XRP started the day at $2.24, marking an 18% rise from Tuesday’s local low of $1.90.

The recent price uptick coincided with growing optimism over a potential ceasefire in the Russia-Ukraine conflict and a cooling trend in the U.S. Consumer Price Index (CPI).

The latest CPI data for February revealed that the inflation rate eased to 2.8%, down from 3% in January, and below the anticipated 2.9%. On a monthly basis, CPI increased by just 0.2%, significantly lower than January’s 0.5% rise.

These inflation figures seem to have mitigated the concerns sparked by last Friday’s disappointing U.S. Non-Farm Payrolls (NFP) report, which initially set the stage for a pessimistic market outlook and fueled anticipations of a looming recession.

However, with the CME Group’s FedWatch tool, widely used by institutional investors, now indicating a nearly certain 99% probability that the Federal Reserve will maintain the current rates in its March 21 decision, traders appear to be shifting their attention toward a prolonged period of steady interest rates.

This scenario could ultimately lead to increased investor confidence in risk assets like XRP, especially as traders who exited positions amid the NFP uncertainty return to capitalize on the sustained bullish trend.

Ripple (XRP) derivatives deep dive

The latest XRP derivatives data from Coinglass indicates an emerging bullish sentiment, as key metrics suggest increasing trader confidence.

Open interest has risen by 3.48% to $3.05 billion, signalling growing commitment among traders to their existing positions. More so, options open interest surged 10.69% to $1.37 million, reflecting a stronger institutional appetite for leveraged exposure to XRP price movements.

While spot volume dipped slightly by 3.96% to $8.35 billion, the increase in open interest suggests that traders are positioning for a potential upside rather than exiting the market.

Further reinforcing the bullish case, Binance’s long/short ratio for XRP/USDT accounts stands at 2.49, while OKX traders show a similar bias with a 2.14 long/short ratio.

This indicates that more traders are opening long positions in anticipation of further gains. Additionally, liquidation data shows that longs have outperformed shorts in recent liquidation events, with $4.25 million in long liquidations versus $4.61 million in short liquidations over 24 hours.

This suggests that bears are losing control, potentially setting the stage for an XRP breakout above its $2.50 resistance level.

XRP price forecast: bulls eye $2.60 as market recovers from sell-off phase

On lower time frames, XRP price is attempting to recover after a steep 27.53% correction, stabilizing above $2.24 as buyers defend the early recovery gains.

According to market volume data, the XRP price rebound comes as volume contracts following a 1.63 billion token selloff, signaling that sellers are losing momentum.

The recent 18.88% price surge over two days indicates renewed bullish pressure, with XRP attempting to reclaim the $2.34 resistance level, which aligns with the 20-day EMA.

A successful breakout above this threshold could pave the way for a rally toward $2.60, where the upper Bollinger Band currently sits, acting as the next major resistance zone.

On the downside, failure to hold above $2.24 could reignite selling pressure, with the lower Bollighter Band at $1.92 emerging as key support.

However, the long/short ratio data from Binance and OKX, showing a strong bullish bias, suggests market sentiment favors the upside.

If momentum sustains, XRP could push toward $2.76, a key level from recent