XRP Rebounds 4% After 22% Drop, Market Pressured by U.S. Treasury Yield Surge

Ripple (XRP) has stabilized above the $2.10 mark following a significant decline over the weekend. The cryptocurrency experienced a 22% drop, but found strong support at $2.00, preventing a deeper breakdown. As of March 9, 2025, XRP has rebounded to approximately $2.18, indicating a recovery from the weekend's sell-off.

The broader cryptocurrency market has been under pressure due to capital outflows following the latest U.S. Non-Farm Payrolls (NFP) report. The 10-year U.S. Treasury yield has surged to 4.3%, its highest level since November 2023, as institutional investors shift funds toward fixed-income securities. This movement has added to the selling pressure on XRP and other cryptocurrencies.

Market sentiment around XRP has been influenced by economic policies and regulatory shifts. Data from Coinglass reveals that bearish traders currently dominate the XRP derivatives market, with short leverage positions amounting to $372 million, compared to $114 million in long leverage positions. This indicates that bearish sentiment accounts for approximately 76.5% of leveraged positions, reflecting growing concern about potential impacts on XRP prices.

A closer look at the liquidation map shows that a major $297 million in short contracts is concentrated at the $2.70 mark. This level represents a key hurdle for bulls in the next recovery phase. If XRP price approaches $2.70, bearish traders could take defensive measures, such as increasing short positions or triggering liquidations to suppress upward momentum. This could create a temporary resistance zone.

Despite the price pressure, on-chain metrics show increasing interest in XRP. The number of weekly active XRP addresses has increased to 1.15 million, marking a fresh record high and suggesting heightened network usage. The rise in active addresses has coincided with a surge in transaction activity, with XRP transactions increasing to $5 billion within 24 hours. Wallet activity has also increased by more than 600%.

Coinglass data also shows an increase in short positions on XRP, following a sudden spike in negative funding rates. This points toward increased pressure from short sellers betting that XRP price will drop further. If funding rates remain negative for an extended