Ripple (XRP) price closed strongly last week, rallying to $3.50 for the first time since 2021. Two factors drove the upside momentum. First, US Fed Chair Jerome Powell hinted at rate cuts in the upcoming Federal Open Market Committee (FOMC) meeting on September 17, instantly sparking market-wide rallies.
Second, the Securities and Exchange Commission (SEC) and Ripple finally resolved their legal dispute, ending all appeals and clearing the way for final enforcement actions.
The settlement includes Ripple’s $125 million penalty and affirms the court’s ruling that XRP is not a security in secondary market transactions.
On Friday, Defense lawyer James Filan confirmed that the US Court of Appeals for the Second Circuit formally dismissed the parties’ appeals, marking the conclusion of appellate proceedings and shifting the case to the district court for enforcement.
Despite these bullish legal and macro drivers, XRP underperformed. Rather than join rivals Bitcoin and Ethereum, which surged to fresh all-time highs of $124,000 and $4,890, respectively, in August. XRP instead fell short of its $3.84 target, retracing 4% to trade at $3 at the time of publication on Sunday.
Derivatives markets data shows how short traders converged on XRP markets, after the Ripple-issued coin missed the all-time high target on Friday.
Coinglass’ 30-day Liquidation Map data reveals XRP short positions at $1.16 billion, far outweighing longs worth just $519 million. When shorts outweigh longs after a rally, it reflects profit-taking among bullish traders while bears look to exploit overbought conditions.
This overwhelming dominance of short positions could keep the XRP price under pressure in the coming trading sessions unless fresh bullish triggers emerge
XRP price action is consolidating around $3.01 at press time, with the latest retracement reflecting both profit-taking and heavy short positioning.
Technical indicators highlight the indecision. The short-term moving averages are converging, with the 5-day SMA ($2.99) and 13-day SMA ($3.05) creating a narrow zone of resistance. The MACD remains in negative territory, showing weak bullish momentum and signaling caution for buyers.
On the bullish side, XRP must reclaim the $3.10 range with conviction to challenge $3.50 again. A breakout above $3.50 would open the path to $3.84, the level rejected last week, and potentially extend toward $4.00 if renewed institutional interest follows the recent SEC settlement.
In a bearish scenario, failure to hold $3.00 could expose XRP to downside risks toward $2.88, with deeper losses targeting the $2.70 support level, where a significant rebound occurred in early August. Until a decisive move unfolds, traders can expect range-bound action, with short positioning amplifying volatility in both directions.
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Read original story Ripple (XRP) Price Forecast: Short Sellers Bet $1.2 Billion Against XRP after Final SEC Settlement Confirmation by Ibrahim Ajibade at Coinspeaker.com