SEC Reviews WisdomTree Amid XRP Open Interest Surge Approaching $5B

On the heels of a bullish surge in trading activity, the SEC has begun a formal review of WisdomTree’s proposed XRP Trust amid significant fluctuations in XRP’s market value.

• XRP’s Open Interest reached nearly $5 billion as the SEC undertakes a critical assessment of WisdomTree’s trust, attracting considerable market focus.

• Despite recent turbulence, XRP’s value experienced a minor decline to $2.2983, marking a 0.80% drop, with key resistance and support levels identified for traders.

Ripple’s XRP saw a notable increase in futures market Open Interest, totaling approximately $4.56 billion, according to data from CoinGlass. Exchanges contributing to this figure include Binance at $895.58 million, Bybit at $760 million, and Gateio at $750 million.

The market sentiment indicates that a rising number of open contracts could contribute to price volatility. However, XRP maintained stability near the $2.30 mark, a positive sign despite fluctuating market conditions.

Source: CoinGlass

A surge in open interest typically indicates stronger market confidence, suggesting that traders expect an upward movement in prices. Nonetheless, caution is warranted as increasing interest rates and price stagnation present potential challenges for the broader cryptocurrency market.

XRP price analysis amid daily decline

The XRP token has been subjected to a series of downward pressures, culminating in a price drop to $2.2983, a 0.80% decrease, subsequently settling in a demand zone.

Critical Break of Structure (BOS) levels have been identified at $2.20, with the price achieving equal highs repeatedly between $2.40 and $2.70. Attempts to break past $2.40 have faced considerable rejection, indicating a waning bullish momentum.

Should XRP remain above the critical support level of $2.20, there is potential for a rally towards $2.40, with equal highs positioned around $2.50. A significant breakthrough above $2.50 could prompt a retest of the $2.70 resistance region.

Source: TradingView

Conversely, a dip below the support level of $2.20 could lead XRP to retest the demand zone near $2.10. The formation of a significant equal low (EQL) around $2.22 warrants close attention from traders.

For XRP to maintain a bullish outlook, it must reclaim the $2.40 mark; a failure to do so could trigger stronger bearish pressure.

Traders should remain vigilant, monitoring resistance levels above $2.40 and below $2.70, alongside reactions between the $2.10 and $2.20 thresholds.

SEC review on WisdomTree

The SEC’s ongoing evaluation of the WisdomTree XRP Trust, following a proposal from the Cboe BZX Exchange to list XRP-based products, marks a crucial step in expanding cryptocurrency trading.

As reported, the SEC acknowledged this matter on March 11 and extended its review period, reflecting the agency’s cautious yet focused engagement with cryptocurrency compliance.

While no definite decision has been made, the review underscores the SEC’s intent to diligently consider the implications of introducing new crypto trading products.

This careful scrutiny emphasizes the ongoing effort to ensure regulatory clarity in the rapidly evolving digital asset landscape.

Conclusion

The recent developments around XRP illustrate both challenges and opportunities as the cryptocurrency markets navigate regulatory scrutiny and market volatility. Investors and traders alike should stay informed on key metrics and levels, particularly in light of the SEC’s review of the WisdomTree XRP Trust, as future market movements unfold. Ensure you’re prepared to adapt to changing conditions in this dynamic environment.