Despite the recent price reversal across various cryptocurrencies, XRP, the native token of Ripple Labs, continues to capture the attention of crypto enthusiasts. This renewed focus comes as the asset faces a challenging market environment marked by a notable decline in its price. According to on-chain analytics firm Coinglass, XRP has experienced a price drop of over 6.50% in the past 24 hours, trading near $2.50, signaling a bearish trend.
Rising Long Positions on Binance
An interesting development, however, has emerged on Binance, where the Long/Short ratio for XRPUSDT currently stands at 2.80. This indicates strong bullish sentiment among traders, as for every 2.80 long positions, there is just a single short position. In fact, 73.6% of the top XRP traders on Binance are holding long positions, with only 26.4% opting for short positions. These metrics suggest that many traders remain confident in XRP’s potential despite the ongoing market uncertainty.
Struggling to Hold Key Support Levels
Despite the optimism from Binance traders, XRP is facing significant price struggles. The asset has failed to maintain its critical support level of $2.60, which was previously reached during a price reversal. Should XRP continue to lose momentum and close a daily candle below the $2.50 level, it risks a further decline of up to 25%, with the next support point around $1.95.
XRP’s Relative Strength Index (RSI) is currently at 38, indicating weakness and a possible continuation of the downtrend. Moreover, the 200 Exponential Moving Average (EMA) remains below the price, suggesting an uptrend that has yet to materialize.
Potential Liquidation Areas and Market Sentiment
With the prevailing bearish market sentiment, major liquidation zones are emerging. If XRP’s price drops to $2.47, over $22 million worth of long positions will be liquidated. Conversely, a price increase to $2.75 could trigger the liquidation of approximately $99 million in short positions. These on-chain metrics and technical analysis highlight a challenging environment for XRP, with short-sellers dominating the asset at present.
As the market continues to fluctuate, traders and investors are closely watching XRP’s price action, with many speculating on its next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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