Ripple (XRP) Analysis: Traders Anticipate Recovery Amid SEC Challenges

Ripple Traders Expect Recovery Despite SEC Challenges

Ripple's (XRP) price fell from $0.63 to $0.52 earlier this week due to another regulatory battle with the US SEC. However, traders in the derivatives market seem to believe that this is a temporary setback rather than a long-term barrier, as they held positions predicting a bounce for the altcoin.

SEC Appeal and Market Reactions

On Wednesday, the US SEC filed an appeal challenging XRP's non-security status, which had been declared by the court in July 2023. Shortly after the announcement, XRP's price dropped, wiping out a significant portion of its recent gains. While traders initially panicked and opted to shorten the token, data from Coinglass shows that things have now changed. According to the derivatives information portal, XRP's Long/Short Ratio had risen to 2.10, suggesting a bullish market sentiment.

• 67.75% of traders are taking long positions
• 32.25% have opted for short positions
• Majority of traders anticipate a rise in XRP’s value

Potential Price Movement

The liquidation heatmap indicates significant buying interest around $0.62 to $0.63. Combining this with the Bollinger Bands showing XRP as oversold at $0.52 provides further evidence for a possible rebound. If XRP's price can exceed the $0.58 resistance, targets may reach up to $0.62.