XRP Soars After SEC Resolution: What’s Next for Traders?
XRP has made substantial gains, rising over 10% since Thursday following a pivotal agreement between Ripple and the U.S. Securities and Exchange Commission (SEC) to dismiss their ongoing legal appeals. This milestone marks a significant turning point for both the cryptocurrency and its investors, culminating in heightened trading volumes and optimism in the market.
XRP Futures Volume Breaks Records
According to on-chain data from Glassnode, XRP’s futures trading volume surged over 200% in just 24 hours to reach an impressive $12.4 billion. This impressive spike contributed to XRP overtaking Solana, which recorded a trading volume of $9.6 billion. Such an uptick in futures volume typically indicates increased interest among traders and reflects speculative positioning, particularly in the wake of major news events.
Additionally, open interest—representing the value of unsettled futures contracts—rose by 15%, bringing it to around $5 billion. This upward trend in open interest is accompanied by a positive daily funding rate of 0.01%, suggesting that a majority of traders are betting on long positions, anticipating further price increases. However, the concentration of long positions can present downside risks, as over-leveraged traders may face liquidations amid market corrections.
Technical Indicators and Future Expectations
XRP’s recent rise has also resulted in a breakout above the upper trendline of a bull flag pattern, with trading volumes validating the momentum behind this move. Traditional analysts projecting upside targets for bull flags suggest that XRP could reach above $4.50—approximately 35% higher than current levels—by the end of September or October. This hopeful outlook aligns with expectations of a potential Federal Reserve rate cut that could further pique interest in riskier assets like XRP.
Moreover, the $4.50 target resonates with several analysts, notably Mikybull Crypto, who anticipates that XRP could climb to between $5 and $8 by the end of 2025, while another analyst, Dom, has even set a target of $10. As traders evaluate their positions, the distribution of XRP’s cost basis highlights key areas of supply, particularly within the $2.80 to $2.82 range where approximately 1.70 billion tokens were acquired. This accumulation suggests a strong support level, should XRP face a market pullback.
As traders navigate this dynamic landscape, the sentiment surrounding XRP remains bullish but cautious. Market participants must remain vigilant of potential volatility and the inherent risks involved in leveraged trading, particularly in light of developments from regulatory fronts and broader market trends.