XRP Faces $2.60 Resistance Despite SEC Victory

XRP, the cryptocurrency associated with Ripple, has been trading around the $2.35 mark for most of March 27. Over the past 30 days, traders have deployed nearly $400 million in short-leveraged positions, which has prevented XRP from breaking key resistance levels. This significant amount of short positions has created a barrier that has kept XRP below $3, despite various bullish catalysts.

Ripple (XRP) has seen notable gains over the past week, largely driven by the US Securities and Exchange Commission's decision to drop charges against Ripple. Many market participants expected a sharp correction following the 10% rally on Monday, assuming large investors would trigger a “sell-the-news” event. However, sustained bullish sentiment, coupled with fresh volatility from Trump’s 25% auto tariff announcement, has helped XRP maintain stability.

Market data indicates that Ripple price briefly dipped to $2.30 before rebounding to $2.35 at press time. This intraday recovery suggests strong buying support at current levels. However, derivatives data signal stiff resistance clusters that could impede further price gains. Over the past 30 days, bears have placed $404 million in short-leveraged positions—30% more than the $283 million in active long positions. The most significant concentration of these short positions, totalling $244 million, is clustered around the $2.60 level.

This high volume of short positions at $2.60 may explain why XRP has struggled to breach this resistance level, despite strong fundamental catalysts such as the SEC dropping its case against Ripple. Whenever XRP price approaches $2.60, an influx of sell orders from leveraged short positions forces a retracement, effectively capping bullish momentum. Until short positions are liquidated or bulls muster enough demand to absorb selling pressure, XRP may continue to face strong resistance at $2.60, delaying a potential breakout toward $3.

XRP price remains under pressure, trading at $2.35, as it struggles to reclaim key resistance levels. The daily chart presents mixed signals, with the 50-day SMA at $2.52 acting as a key barrier to the upside, while support at $2.00 remains a critical level for bulls to defend. The declining MACD histogram suggests waning bullish momentum, as the MACD line flattens near the zero mark. This signals that buying pressure is fading, leaving room for potential downside movement. The Parabolic SAR dots above the current price indicate a bearish trend, reinforcing the likelihood of further selling pressure. Additionally, declining volume confirms the lack of strong bullish conviction.

However, if XRP reclaims $2.40 and closes above the 50-day SMA, it could spark renewed bullish momentum, targeting $2.60. Failure to hold above $2.30 could expose XRP to further declines, with bears eyeing the $2.00 psychological level as the next support. A decisive move below $2.00 would confirm a bearish breakdown, opening the door for further losses toward $1.76. If bears unwind short positions or institutional demand rises due to ETF optimism, XRP could see a breakout above the $3 level.