XRP (XRP) price rallied 16% less than 24 hours after news that Ripple’s legal dispute with the US Securities and Exchange Commission (SEC) could end made headlines on March 19. However, XRP has shed half of its gains over the past two days, losing position below an important level at $2.50.

XRP rally continues to be spot-driven

XRP matched its all-time high of $3.40 on Jan. 16 as soaring spot buy volumes provided a sustainable parabolic rally that lasted for weeks.

A similar outlook is taking shape again in the XRP market today. Data from Velo suggests that the aggregated spot tape CVD turned positive for the first time since late January. 

XRP price and aggregated spot tape data. Source: Velo.chart

The aggregated spot tape cumulative trade delta indicator tracks the net difference between the aggressive buy and sell trades across multiple exchanges. When the indicator turns green and rises above zero, it signals growing buying pressure as market buy trades outnumber sell trades. This upward trend reflects persistent buyer aggression, triggering a price rise.

XRP price, open interest and aggregated premium data. Source: Velo.chart

A negative aggregated premium on open interest implied that the futures market has continued to bid against an XRP price rise. This means the current situation is a tussle between bullish spots and bearish perps. 

Related: Why is the crypto market down today?

XRP may tag $2 first before chasing new highs

CrediBULL Crypto, an anonymous crypto trader, implied that XRP is on track for an all-time high above $3.40 in the next few weeks, but the crypto asset will potentially retest its immediate lows around $2 before embarking on an uptrend. 

Using a Power of 3 technical setup, the trader said that XRP is currently in an accumulation range. This is expected to be followed by a manipulation period, where prices will potentially take out downside liquidity around $1.80 to $2.

Dom, a markets analyst, said XRP’s all-time high volume weighted average price (VWAP) is still a bullish threshold for XRP, and the altcoin must “stabilize” around the $2.50 level.

XRP analysis by Dom. Source: X.com

While the immediate directional bias is hard to predict, XRP’s long-term market structure remained “constructive,” and one of the extremes ranges at $3 and $2, should be breached over the next few days. 

From a technical perspective, XRP could avoid a $2 dip if the prices establish a bullish close above $2.65. This creates a positive break of structure (BOS) for the token, which might convince futures traders to adopt a bullish outlook alongside spot traders.

XRP 4-hour chart. Source: Cointelegraph/TradingView

On the contrary, a close below $2.23 nullifies XRP’s recent price action and reinstates the overall bearish trend. Retaining a position above the incline support (black trendline) is necessary for a higher high trend over the next few days. 

Despite bullish spot activity, XRP prices linger without a decisive trend shift. The market drifts in sideways consolidation, with bulls and bears locked in a tug-of-war for control.

Related: XRP price chart hints at 75% gains next as SEC ends lawsuit against Ripple

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.