Why is XRP price up today?

XRP (XRP) price is up 15% over the last 24 hours to trade at $2.55 on March 19.

The third largest altcoin by market capitalization traded 32% above its local low of $1.89 reached on March 11, as most crypto prices turned green ahead of today’s Federal Open Market Committee minutes and the highly anticipated press conference from Federal Reserve Chair Jerome Powell.

XRP/USD daily chart. Source: Cointelegraph/TradingView

Let’s examine the key drivers behind XRP’s rebound today.

XRP rallies after Ripple CEO Brad Garlinghouse makes major announcement

One of the primary catalysts for XRP’s price surge is the statement from Ripple CEO Brad Garlinghouse, declaring that the US Securities and Exchange Commission (SEC) is set to drop its appeal against Ripple. 

What you should know:

• Initiated in December 2020, the case saw a partial victory for Ripple in August 2024, when a federal judge fined the company $125 million—far less than the SEC’s $2 billion demand—for unregistered securities sales to institutional investors. 

• The ruling affirmed that XRP itself is not a security for retail sales.

• However, the SEC appealed in October 2024, challenging this distinction.

• In a March 19 post on X, Garlinghouse announced that the agency’s multi-year enforcement action against Ripple is finally coming to an end. 

• Garlinghouse’s confident assertion—“This is it – the moment we’ve been waiting for. The SEC will drop its appeal”—has ignited optimism across the crypto community. 

• If true, this development would remove a dark cloud that has hung over XRP for years, boosting investor confidence.

• XRP’s price jumped by over 10% within an hour to an intraday high of $2.59 following the news.

• The prospect of regulatory clarity has long been a hurdle

  for XRP, and this news signals a potential turning point.

Over $11 million in short XRP positions liquidated in an hour

Today’s XRP rally was accompanied by significant liquidations in the derivatives market.

Key points:

• Over $11.96 million worth of short XRP positions have been liquidated over the last hour alone, compared to $5.5 million in long liquidations.

• Bearish traders are forced to sell their positions when short positions are liquidated.

Total XRP liquidations. Source: CoinGlass

• The scale of these liquidations mirrors March 3, when a total of $46 million in short XRP positions were wiped out, accompanying a 39% rise in price from $2.17 to a four-week high of $3.02 over the same day.

• The rally accompanies a recovery in XRP’s funding rate, additional data from CoinGlass reveals.

• XRP’s 8-hour funding rates have increased from -0.0077% on March 18 to 0.0018% on March 19, as shown in the chart below.

XRP funding rates performance. Source: CoinGlass

• A rise in funding rates indicates increased demand for long positions and increased interest among XRP traders.

Related: XRP’s role in US Digital Asset Stockpile raises questions on token utility — Does it belong?

XRP price validates a bull-flag

XRP has confirmed a bull flag pattern on the four-hour chart after closing above the upper boundary of the flag at $2.30. 

Key levels to watch:

• XRP is currently testing the resistance level at $2.60 after establishing support from the flag’s apex.

• Key levels to watch on the upside are the $2.65 range high (reached on March 6) and the psychological level at $2.70.

•  A high volume move above these resistance levels could accelerate the XRP higher.

• The maximum profit target from the pole’s length indicates that XRP could revisit the $2.80 level over the next few hours.

• This would represent another 10% ascent from the current level.

XRP/USD four-hour chart. Source: Cointelegraph/TradingView

• The relative strength index (RSI) has risen from 35 to 74 over the last 24 hours, indicating an increasing bullish momentum. 

• Conversely, the RSI’s value of 74 suggests that the ongoing rally may soon slow down as overheated conditions set in.

• A daily candlestick close below the support level at $2.47 will see the altcoin’s price drop first to $2.40 and later to the flag’s upper boundary at $2.30. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.