Key Insights:
- XRP long positions exceed shorts by $35M, signaling strong bullish sentiment.
- Regulatory clarity at White House summit could drive XRP toward $5.85.
- Key resistance at $3.40 must break for sustained XRP price rally.
XRP price action remains in focus as the White House hosts a pivotal crypto summit. Investors are eyeing regulatory clarity, with discussions centering on a U.S. crypto reserve that could include Ripple’s token.
Amid growing speculation, derivatives data suggests traders are betting heavily on bullish momentum. However, macroeconomic pressures, including the upcoming Non-Farm Payrolls (NFP) report, could dictate near-term market direction.
XRP Traders Load Up on Leverage as Bulls Dominate
XRP’s derivatives market has seen a surge in bullish positioning, with Coinglass data showing long leverage crossing $150 million. At press time on March 6, this figure stood well above the $115 million in active short contracts, highlighting a bullish bias.
With long positions outweighing shorts by more than 20%, XRP price appears poised for continued gains. However, analysts warn that excessive leverage increases the risk of sharp corrections if momentum shifts.
Dark Defender, a market analyst, highlighted that XRP must surpass $3.40 to sustain its uptrend. “Breaking this level would confirm a continuation toward $5.85,” he noted, pointing to technical indicators supporting a bullish breakout.
White House Summit Fuels XRP Price Speculation
The summit has sparked speculation around XRP’s role in the U.S. crypto market, particularly regarding its potential inclusion in a national reserve. Last week, former U.S. President Donald Trump namedropped XRP, fueling an immediate rally to $3.00, before profit-taking pushed the price back to $2.2.
If policymakers provide clearer regulatory guidelines or signal support for Ripple’s cross-border payment solutions, XRP could sustain bullish momentum. CryptoQuant CEO Ki Young Ju noted that the growing demand for stablecoins could catalyze a broader altcoin season, which may benefit XRP.
Macroeconomic Risks Could Disrupt Rally
Despite growing optimism, XRP’s remains vulnerable to external market forces. The upcoming NFP report could shift sentiment, particularly if economic data undermines broader risk appetite.
CryptoQuant analysts have warned that XRP’s open interest surged by 5.5% in a short timeframe, signaling a leverage-fueled price move. “Upcoming volatility could be wild,” the firm noted, advising traders to manage risk accordingly.
At press time, XRP traded at $2.40, down 7% in 24 hours. However, profit-taking has increased, with realized gains topping $2 billion since the start of the week, according to Santiment.
A breakthrough above $3.40 could set the stage for further gains, but macroeconomic factors and leverage buildup pose risks.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
