TLDR

• XRP price has stabilized above $2.10 after a 22% decline over the weekend
• A $297M bearish leverage cluster at $2.70 presents a significant resistance level
• Weekly active XRP addresses have reached a record high of 1.15M
• Transaction activity has skyrocketed to $5 billion within 24 hours
• Short sellers have increased positions on XRP, shown by negative funding rates

Ripple (XRP) price has stabilized above the $2.10 mark as of March 9, 2025, following a sharp 22% decline over the weekend. The cryptocurrency found strong support at $2.00 despite the broader crypto market experiencing renewed selling pressure following the latest U.S. Non-Farm Payrolls (NFP) report.

XRP traded as low as $2.08 on Sunday. However, bullish traders made a strong effort to prevent a deeper breakdown. The price has since rebounded to approximately $2.18 at the time of writing.

The broader cryptocurrency market has faced headwinds from capital outflows following the U.S. NFP report. With bond yields climbing and inflation concerns resurfacing, risk assets like XRP have been under pressure. The 10-year U.S. Treasury yield has surged to 4.3%, its highest level since November 2023.

This rise in yields indicates that institutional investors are shifting funds toward fixed-income securities. The movement away from crypto assets has added to the selling pressure on XRP and other cryptocurrencies.

Market sentiment around XRP has been influenced by economic policies. While Bitcoin has experienced heightened volatility, XRP traders have adjusted their positions in response to regulatory shifts.

Data from Coinglass reveals that bearish traders currently dominate the XRP derivatives market. Over the past 30 days, total long leverage positions amounted to $114 million, while short leverage stood at $372 million.

This means that bearish sentiment accounts for approximately 76.5% of leveraged positions. The caution among traders reflects growing concern about potential impacts on XRP prices.

A closer look at the liquidation map shows that of the active $372 million in short contracts, a major $297 million is concentrated at the $2.70 mark. This level represents a key hurdle for bulls in the next recovery phase.

Market Analysis

If XRP price approaches $2.70, bearish traders could take defensive measures. These might include increasing short positions or triggering liquidations to suppress upward momentum. This could create a temporary resistance zone.

For traders with a low-risk appetite, waiting for a confirmed breakout above $2.70 before entering major long positions could be a safer strategy. A decisive move above this resistance would signal a shift in market sentiment.

Despite the price pressure, on-chain metrics show increasing interest in XRP. Data from Santiment indicates that the number of weekly active XRP addresses has increased to 1.15 million. This marks a fresh record high and suggests heightened network usage.

The rise in active addresses has coincided with a surge in transaction activity. According to market analyst Scott Melker, XRP transactions have increased to $5 billion within 24 hours. At the same time, wallet activity has increased by more than 600%.

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

If funding rates remain negative for an extended period, it increases the risk of a short squeeze. A sudden recovery in Ripple price could force short sellers to close their positions. This might accelerate any upward momentum.

XRP price has dropped to retest a multi-month support level at $2.14. Ripple has bounced from this support before, but continued sell pressure may lead to a breach of this critical level.

Technical indicators present a mixed picture. The MACD line has crossed below the signal line, forming a sell signal. However, the Stoch RSI suggests that Ripple may be oversold. This could hint at possible seller exhaustion and trigger a reversal.

For Ripple price to avoid dropping below the $2 psychological level, it needs to overcome resistance at $2.60. A decisive breakout above this level could pave the way for XRP price to rally past $3.

The rising network activity suggests growing market interest in Ripple. If this surge leads to traders accumulating XRP during the current dip, it could trigger a price recovery in the near term.