Key Insights:
- Ripple CLO urges SEC for clear token rules. The XRP price trades near $2.30 with support at $2.20-$2.30.
- XRP long/short ratios exceed 2.5 on Binance and OKX, signaling strong bullish trader positioning.
- XRP faces resistance at $2.36; breaking $2.50 could target $3.30 and open the door for higher gains.
Ripple has recently caught attention due to XRP price movements and ongoing regulatory developments. The token trades near $2.30, showing mixed short-term signals. Meanwhile, Ripple’s Chief Legal Officer has taken steps to seek clear rules from the U.S. Securities and Exchange Commission regarding crypto tokens. This legal move may play a role in XRP’s future price direction, possibly toward the $5 level.
Ripple’s Legal Push for Regulatory Clarity
Ripple’s Chief Legal Officer, Stuart Alderoty, sent a formal letter to the SEC demanding clearer guidance on the classification of crypto tokens.
He argued that many tokens, including XRP, should not be treated as securities under current laws. According to Alderoty, secondary market transactions do not establish a buyer-seller relationship necessary for investment contracts.
The letter referenced the recent ruling by Judge Torres, which found XRP not to be a security in secondary sales, while acknowledging institutional sales could meet investment contract definitions.
Alderoty also emphasized that Congress, not the SEC, is responsible for fixing regulatory gaps. His request seeks to differentiate between fungible crypto tokens and securities more precisely.
This legal development could ease regulatory pressure on XRP, encouraging wider adoption and investment.
Clearer rules may help institutional investors gain confidence, which could influence the token’s price in the coming months.
Technical Trends Showing the XRP Price in an Upward Movement
XRP is currently trading around $2.30 and shows signs of support near the $2.20 to $2.30 zone. The price has moved inside an ascending channel, suggesting a potential bullish trend if support holds. Fibonacci retracement levels in this range have acted as strong demand zones in the past.
The token faces resistance near $2.36 and $2.40, with further resistance around $2.50. Breaking above these levels could open the path toward $3.30 and beyond. However, if XRP fails to maintain support, it could revisit lower levels near $2.20 or even $1.90.
Technical analysts note that consolidation between $2.0 and $2.5 is likely before the next price move. If XRP sustains support and breaks above resistance, a rally toward $5 could become possible over time.
Market Sentiment and Trading Activity
Market data shows a strong long bias among both retail and institutional traders. Binance and OKX long-to-short account ratios are above 2.5, indicating most traders expect price gains. Top traders also hold significant long positions, which often precedes bullish price action.
Volume has increased to around $3.18 billion, signaling active trading and liquidity. Options open interest is rising, though options volume has slightly dropped, suggesting traders are holding rather than opening new bets. This may reflect confidence in the current bullish setup.
Recent liquidations have hit more short positions than long ones, implying a short squeeze could be underway. This dynamic often leads to upward price pressure as shorts cover their trades.
Potential Drivers for a XRP Price Surge
Important changes have occurred that may lead to a higher price for XRP. Ripple’s latest connections and actions are helping the token become more usable. XpressWire reports that the Dubai Land Department has launched a tokenization platform on the XRP Ledger.
Buying Hidden Road, a prime broker in big-volume treasury transactions, could make the XRP network more used. Tokopedia also got approved for a payments license in Dubai which helps its expansion in payment services worldwide.
There are rumors that Ripple could purchase the USDC issuer Circle, and encouraging news about XRP ETFs may encourage more investors to buy XRP.
The SEC lawsuit is still very important. Should the outcome favor the United States, it could end major confusion about the law. Putting these developments together may create conditions that increase prices to the target of $5 over the next few months.