Rise in XRP Short Positions Accompanying Potential Price Drop Below $2
Cryptocurrency Buzz: Ripple's XRP Battles Bearish Waves, Barely Clinging Above $2
It's a rough ride for Ripple's XRP as the altcoin grapples with bearish sentiments, stubbornly hovering below $2.20. Traders are betting their chips on the bubble bursting and the price taking a plunge.
XRP and the Short Game
According to Coinglass, traders have been eagerly piling up short positions targeting XRP. The token's long/short ratio, typically a measure of bullishness, has been languishing below 1 for close to two weeks now, reflecting a growing preference for bearish bets. At this moment, it hovers at 0.93.
When an asset's long/short ratio surpasses 1, it means traders are primarily betting on a price increase. However, with XRP, the ratio lingering below 1 indicates traders are predicting a drop.
Weighing Sentiment: Negative Tone Prevails
The prevailing bearish sentiment in the XRP market is further confirmed by the weighted sentiment metric. This gauge, which measures the overall tone of conversations surrounding an asset on social media and online platforms, has remained negative, at -0.40. A negative value indicates heightened sell-side pressure and fading investor confidence, putting XRP at a high risk of extending its price dip.
XRP on the Brink: Dropping Below $2 No Longer a Distant Reality
With the surge in short interest and the bearish sentiment intensifying, XRP could slip below the $2 mark. If the trajectory continues and selling pressure increases, a dive under this psychological barrier might occur in the near term. In such a scenario, XRP's price could plummet to $1.99 and potentially slump to its year-to-date low of $1.61.
However, if new demand for the altcoin resurges, this bearish prediction could be averted. In that case, XRP might break above $2.29, trending towards $2.50.
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Disclaimer:This analysis is merely for informational purposes. BeInCrypto is dedicated to delivering accurate, unbiased reporting. However, market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Enrichment:The bearish outlook for XRP can be attributed to several factors, including declining network activity and liquidity, technical patterns and price resistance, macroeconomic uncertainties, regulatory and legal uncertainties, and institutional and market sentiment. Whale activity, global market sentiment, and the XRP/BTC ratio also contribute to the ongoing bearish trend.
- Traders have been aggressively building short positions targeting XRP, as indicated by the token's long/short ratio that has been below 1 for nearly two weeks, suggesting a growing preference for bearish bets.
- The prevailing negative sentiment in the XRP market is also confirmed by the weighted sentiment metric, which measures the overall tone of conversations surrounding XRP on social media and online platforms, and has remained negative at -0.40, showing heightened sell-side pressure and fading investor confidence.
- With the surge in short interest and the bearish sentiment intensifying, XRP could drop below the $2 mark, possibly plunging to its year-to-date low of $1.61 if the selling pressure increases.
- However, new demand for the altcoin could resurface, potentially leading to a break above $2.29 and trending towards $2.50, thereby averting the bearish prediction.
- It's important to consider factors such as declining network activity and liquidity, technical patterns and price resistance, macroeconomic uncertainties, regulatory and legal uncertainties, whale activity, global market sentiment, and the XRP/BTC ratio when evaluating the ongoing bearish trend in XRP and crypto markets before making any investment decisions.
