XRP News Today: Bulls and Bears Clash at XRP's $2.50 Pivotal Level as Volatility Looms

The XRP market is experiencing a tug-of-war between bearish and bullish forces, with traders positioning for a potential blow-off top as technical indicators and macroeconomic catalysts align. A newly created wallet has opened $7 million in leveraged short positions on XRP and Bitcoin, according to a Yahoo Finance report. The account, carrying over $110 million in notional exposure, bets on XRP falling below $2.80 and BTC dropping below $108,768. Derivatives data from CoinGlass shows a 49.2% skew toward shorts, with Hyperliquid accounting for $37.8 million in liquidations, 66% of which hit the short side.

Meanwhile, a Cryptopolitan report notes Binance traders are aggressively piling into XRP, with futures volume hitting $8.4 billion compared to $1.7 billion in spot volume. Open interest in XRP futures stands at $3.4 billion, signaling speculative fervor despite $16.36 million in net outflows since mid-October. Analysts warn that this divergence—where traders bet heavily on derivatives but sell the token outright—could lead to sharp volatility. XRP's price has stabilized near $2.26, defying a broader crypto market slump.

Technical analysts are drawing attention to Fibonacci extension targets that could define XRP's next move. ChartNerd outlined key levels at $8, $13, and $27, based on a 1.272, 1.414, and 1.618 extension of XRP's long-term accumulation base. These projections align with historical patterns where XRP's four-week consolidation phases preceded major rallies, such as the 2017 surge from $0.005 to $3.61. A CryptoNewsLand analysis shows XRP trading within a descending channel, with support at $2.10 and resistance at $2.50. A break above $2.50 could trigger a rally toward $2.77 and $3.10, while a drop below $2.16 risks a slide to $1.94.

Ripple's strategic moves are adding fuel to the market's uncertainty. The company recently closed a $500 million funding round at a $40 billion valuation, led by firms like Citadel Securities and Galaxy Digital. CEO Brad Garlinghouse emphasized XRP's role as the "core of the ecosystem" during Ripple's Swell 2025 event, where the firm announced a partnership with Mastercard to test RLUSD stablecoin settlements. Garlinghouse also defended the phrase "on XRP" over the technically accurate "on XRPL," signaling a closer alignment with community sentiment, as CoinEdition reported.

However, skepticism persists about Ripple's valuation. Venture capitalists, as reported by The Crypto Basic, argue that Ripple's worth is primarily tied to its $87.5 billion in XRP escrow holdings. TechCrunch founder Michael Arrington pushed back, calling such views "cognitive dissonance" and highlighting Ripple's institutional traction, including its RLUSD stablecoin and custody solutions.

Macro uncertainty looms large, with U.S. Supreme Court proceedings on Trump's tariff powers creating a risk-off environment. Polymarket data shows only 25% of traders expect the Court to uphold the tariffs, heightening fears of market shocks. If the ruling curbs executive authority, it could trigger volatility in equities and crypto alike.

Institutional demand for XRP could also gain momentum if a spot ETF launches. JPMorgan analysts predict $8 billion in inflows for XRP ETFs during their first year, drawing parallels to Litecoin and HBAR's performance. Ripple's Garlinghouse has positioned the company to capitalize on regulatory clarity, including the Crypto Market Structure Bill and Clarity Act.

The market remains divided. While XRP's short-term rebound to $2.29 suggests resilience, derivatives open interest at $3.32 billion, according to CoinEdition, hints at looming volatility. Traders are bracing for a potential blow-off top, with some analysts warning that a breakout above $2.69 could propel XRP toward $3.05 and $3.42, while a breakdown risks a return to $2.00 or lower.