XRP Volume Surges—Is the Price About to Rise Parabolically?

XRP has risen significantly after news that Ripple's ongoing legal battle with the Securities and Exchange Commission of the United States may soon come to an end. In less than a day, the token surged by 14%. However, the brief excitement quickly subsided. XRP rapidly gave up half of that gain, falling below the important level of $2.50. This strong price increase is similar to the price surge in January for XRP, when this asset skyrocketed to its previous all-time high of $3.40. That price increase occurred after strong spot buying and lasted for several weeks. Traders are hoping this will repeat, but this time, the situation seems a bit different. For the first time since the end of January, the accumulated trading delta (CVD) of the aggregated spot tape turned positive. Essentially, it shows the difference between active buy and sell transactions on exchanges. When this number turns green, it means there are more active buyers than sellers - a pattern that often drives prices higher.

Bulls vs Bears: $3 Bankruptcy? Even as spot buyers ramp up, the futures market presents a different scenario. The negative basis in open contracts signals that many traders are betting against price increases. The tug-of-war between spot buyers and futures bears is heating up, with no clear winner yet.

Dom, a cryptocurrency analyst, believes that the average price by trading volume of XRP from its all-time high is still acting as a bullish threshold. According to him, "XRP must stabilize around $2.50". If so, the door to higher levels could open.

But uncertainty is everywhere. While some indicators show strength, the price remains in what is called horizontal consolidation. Simply put, XRP is drifting without a strong direction, as both the bulls and bears refuse to give ground. Pressure Increasing Near $2.65 And $2.23 From a technical perspective, there are important levels to watch. If XRP can close a daily candle above $2.65, it will create what is known as a positive structural breakout. That change could draw future traders into a bullish position, adding fuel to the fire. On the other hand, a close below $2.23 could erase recent gains and send this token back on a downward path. A trader known as CrediBULL Crypto considers the current phase to be an accumulation phase. According to the trader, XRP may fall to sweep liquidity between $1.80 and $2.00 before rising again. The analyst also predicts that this token could soon reach an all-time high above $3.40. This is a bold call, but not impossible if buying pressure remains steady. However, others remain cautious. Even if XRP does not fall below $2, it needs to hold above the upward trend support level to build any long-term strength. Losing that level could trigger a new sell-off and eliminate weak hands.