- XRP’s price faces volatility with mixed signals, signaling potential corrections ahead.
- Increased market activity and TD Sequential signal suggest short-term correction risk.
- DOGE’s scrutiny of SEC could impact XRP’s legal outcome and regulatory stance.
XRP’s price action remains a focal point for traders as analysts provide mixed signals on its trajectory. While some see bullish momentum, others warn of a potential correction. Market data reveals growing volatility, with a surge in trading volume and fluctuations in open interest.
Meanwhile, regulatory developments add another layer of uncertainty, as scrutiny from the Department of Government Efficiency (DOGE) could influence the Securities and Exchange Commission’s (SEC) stance on crypto-related cases.
XRP Targets Key Fibonacci Level
Crypto analyst Dark Defender remains optimistic about XRP’s long-term price movement. He highlighted that despite the current correction, XRP is progressing toward significant price targets.
According to his analysis, the next major Fibonacci resistance level stands at $5.85. The current dip mirrors the market structure seen in 2017 when XRP gained traction after breaking key resistance levels.
Dark Defender’s outlook suggests that XRP’s rally could resume once it consolidates above crucial support levels. However, the short-term outlook remains uncertain as other indicators hint at possible pullbacks.
3-monthly update.
— Dark Defender (@DefendDark) February 18, 2025
When most people ponder the #XRP's current correction, XRP moves firmly to his targets.
The upcoming most substantial Fibonacci level will be at $5.85. The move below is similar to that in 2017.
XRP moved outstandingly after breaking the two white… pic.twitter.com/rXdMQX8GRN
TD Sequential Indicator Signals a Correction
Ali Martinez, another prominent crypto analyst, noted that the TD Sequential indicator on XRP’s daily chart has flashed a sell signal. The pattern, known as TD9, often signals trend exhaustion and potential reversals. XRP recently hit a local high of $2.7638 before closing lower at $2.6433, marking a 3.08% decline.
$XRP may be set for a pullback, as the TD Sequential indicator flashes a sell signal on the daily chart! pic.twitter.com/1EcPCC2gXT
— Ali (@ali_charts) February 18, 2025
If the sell signal holds, XRP could test support near $2.60 or lower before resuming its trend. Historical data indicates that previous TD9 sell signals have preceded short-term corrections. However, strong market interest could limit the downside and allow for a rebound.
Increased Activity and Mixed Sentiment
XRP’s market data reflects heightened trading activity, with a 24-hour volume of $4.15 billion. The price currently sits at $2.58, down 3.70% in the past day but up 3.98% over the past week.
According to Coinglass data, the derivatives market shows contrasting trends, with trading volume rising by 8.89% to $6.76 billion. Meanwhile, open interest declined by 3.19% to $3.98 billion, indicating some traders are closing positions.
Options activity remains volatile. Options volume dropped significantly by 54.19% to $1.55K, while open interest increased by 7.15% to $1.64 million. This suggests growing investor commitment despite reduced speculative trading.
DOGE Investigation Raises SEC Scrutiny Concerns
Regulatory uncertainty continues to impact XRP, with new developments adding to market speculation. The Department of Government Efficiency (DOGE), led by Tesla and SpaceX CEO Elon Musk, has shifted focus to the SEC. The agency’s review of the SEC’s actions, particularly in cases like Ripple vs. SEC, has fueled expectations of a favorable outcome for XRP.
DOGE has reportedly uncovered waste and misuse of government funds across several agencies. If its findings expose similar issues within the SEC, it could support claims that the agency unfairly targeted crypto firms under former Chair Gary Gensler.
The SEC’s new administration is set to hold a closed-door meeting on February 20 to discuss the Ripple case. A decision to pause its appeal, similar to its actions in cases against Binance and Coinbase, could mark the end of its legal battle with Ripple. Additionally, this could open the door for XRP ETF approvals, which the SEC acknowledged last week.
