Despite recent signs of recovery in the broader cryptocurrency market, sentiment around Ripple XRP remains bearish. The altcoin continues to struggle below $2.20, as more traders now bet that the price will drop further.
Traders seem unconvinced that the token will experience a significant price increase in the near term, as many continue to bet against its upside potential.
XRP traders expect further declines as sentiment deteriorates
According to Coinglass, there has been a continued increase in short positions targeting XRP. The token's long/short ratio has remained below 1 for nearly two weeks, reflecting a growing preference for short trades. At the time of publication, this ratio was at
0.93
The long/short ratio of XRP compares the number of long positions (bets that the price will rise) to short positions (bets that the price will fall) in the market.
When an asset's long/short ratio is above 1, there are more long positions compared to shorts, indicating that traders are primarily betting on a price increase.
Conversely, as with XRP, when the ratio is below one, traders are betting on a price decline. The sustained long/short ratio below 1 for several days highlights the prevailing bearish sentiment in the XRP market, indicating expectations of further declines.
Additionally, XRP's weighted sentiment remained in the negative zone, confirming the bearish outlook. At the time of this report, it was at -0.40
Weighted sentiment analyzes social media and online platforms to gauge the overall tone (positive or negative) surrounding a particular asset.
When the value of this metric is negative like this, it indicates increased selling pressure and waning investor confidence. This puts XRP at risk of extending its price decline.
XRP on the edge: Can selling pressure push the price below $2?
With rising short interest and an enhanced bearish bias, XRP faces the risk of slipping below the $2 mark. If the current trend continues and selling pressure increases, a drop below this psychological threshold may occur in the near term.
In this scenario, XRP's price could reach $1.99 and trend towards its lowest level since the beginning of the year at $1.61.
However, a resurgence in new demand for the altcoin could undermine this bearish expectation. In this case, XRP's price may break above $2.29 and trend toward $2.50.