XRP’s prolonged price decline has fueled bearish sentiment, with futures traders increasing their short positions against any potential recovery. Market indicators highlight growing pessimism, as the cryptocurrency struggles to maintain key support levels.
Traders Bet Against XRP Recovery
On-chain data reveals that XRP’s long/short ratio currently stands at 0.99, signaling a bearish market outlook. This metric, which compares the number of long positions (bets on price increases) to short positions (bets on price declines), suggests that traders are largely betting on further downside.
A ratio below 1, as seen with XRP, indicates that more traders are shorting the asset rather than anticipating a rebound. This reinforces the growing bearish sentiment and increases the probability of continued price declines.
Negative Sentiment Adds to Selling Pressure
Adding to the bearish outlook, XRP’s weighted sentiment has dropped to -0.66, according to on-chain analytics platform Santiment. This metric gauges market sentiment based on social media mentions and their positivity or negativity. A negative reading suggests that investors are becoming increasingly skeptical about XRP’s near-term potential, leading to decreased trading activity and further price drops.
XRP at Risk of Breaking Key Support
Since reaching its all-time high of $3.40 on January 16, XRP has been trading within a descending triangle—a pattern that typically signals further losses. The asset is currently testing a crucial support level at $2.27. If this support fails, XRP could see further declines to $2.13. A sustained break below this level might push the price down to $1.47.
Can Bulls Reverse the Trend?
Despite the strong bearish bias, a potential shift in market sentiment could drive renewed buying pressure. If XRP breaks above the descending triangle pattern, it could see an upward move toward $2.81. However, for a sustained rally, bullish momentum must overpower the current selling pressure.
Also Read: Ripple vs. SEC: Legal Expert Slams ‘Unnecessary’ Delay in XRP Lawsuit Settlement
As the market navigates this critical juncture, traders should closely monitor XRP’s price action and sentiment indicators to assess its next potential 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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