Why XRP Traders Are Sweating More Than a Long-Distance Runner in a Sauna! 🏃‍♂️💦

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In a universe where the price of XRP has decided to take a leisurely stroll downwards, the recent White House Crypto Summit has left traders feeling like they just opened a can of expired beans. But fear not, dear reader! A curious shift in the derivatives market suggests that a bullish rebound might just be lurking around the corner, possibly wearing a funny hat. 🎩

Ripple (XRP) Finds Support at $2.30 as White Summit Disappoints

On March 8, Ripple (XRP) found itself in a rather lukewarm bath of disappointment, closing the week with all the enthusiasm of a sloth on a Sunday. The White House Crypto Summit, which was supposed to be the grand spectacle of the year, turned out to be more of a damp squib, prompting traders to take positions that were as strategic as a game of chess played by a cat. 🐱

With Ripple CEO Brad Garlinghouse attending, hopes soared higher than a kite in a windstorm, as many believed the event could lead to positive regulatory developments for altcoins. This was reminiscent of the time when former President Trump decided to include XRP in the crypto strategic reserve, which was about as surprising as finding a cat in a box. 📦

However, the outcome was as underwhelming as a soggy biscuit, with no significant regulatory clarity emerging. This left traders scratching their heads and wondering if they had accidentally tuned into a soap opera instead of a financial summit. To add to the drama, bearish macroeconomic data, particularly the U.S. Non-Farm Payroll (NFP) report showing rising unemployment, exerted further downward pressure, preventing XRP from extending its gains post-summit. 📉

Market volatility saw XRP price dip another 2% on Friday, March 7, bringing total weekly losses to a staggering 13%. But wait! The bulls staged a mild recovery, triggering a 2% upswing to the $2.34 level at press time on Saturday, March 9. It’s like watching a soap opera where the hero suddenly remembers he has a superpower! 🦸‍♂️

Short Traders Reduce Exposure as White House Summit Ends with no Sell-the-News Triggers

Initially, Ripple price plunged another 3% before stabilizing above $2.30, but key derivatives market metrics suggest that the majority of short traders had positioned themselves for a much deeper correction on Friday. As these traders adjust their overleveraged positions, XRP price could inadvertently score mild gains over the weekend, like a cat that accidentally knocks over a vase but ends up looking adorable. 🐾

5 critical XRP derivatives trading metrics from Coinglass reinforce this narrative.

Firstly, trading volume witnessed a significant 45% decline, a common precursor to momentum shifts. With XRP posting its first green candle in four days, the volume contraction signals an imminent directional shift from last week’s dominant bearish sentiment. It’s like the universe is trying to tell us something, but we’re all too busy scrolling through cat memes to notice. 🐱‍👓

Additionally, open interest declined by 6%, approximately during the day while prices rose 2%, suggesting capital outflows from short traders closing their positions rather than fresh capital entering on the long side. This development points to a short squeeze scenario where shorts covering positions could drive a gradual price recovery, much like a balloon slowly inflating after being sat on. 🎈

Another crucial indicator is the long/short ratio, which remains in favor of long positions across major exchanges. Binance XRP/USDT accounts show a long/short ratio of 3.6642, while OKX traders hold a 2.71 long/short ratio, reinforcing that bullish sentiment is returning despite the broader market’s hesitation. It’s like a party where everyone suddenly decides to dance, even though the music is a bit off-key. 🎶

Lastly, the options market also reflects this shift. While options volume has dropped 73%, options open interest has increased by nearly 19%, indicating that traders are repositioning rather than exiting entirely. This repositioning suggests confidence among options traders that XRP could hold the $2

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2025-03-09 03:20