Despite recent signs of recovery in the broader crypto market, sentiment around Ripple’s XRP remains bearish. The altcoin continues to struggle below $2.20, as more traders are now betting on further price declines.
Traders seem unconvinced that the token will experience a significant price surge in the near term, with many continuing to bet against its growth potential.
XRP traders expect further declines amid worsening sentiment
According to Coinglass data, there is a continuous increase in short positions targeting XRP. The long/short ratio of the token has remained below 1 for almost two weeks, reflecting a growing preference for short trades. At the time of publication, this ratio is 0.93. The long/short ratio of XRP compares the number of long positions (bets on price increase) to short positions (bets on price decrease) in the market.
When the long/short ratio of the asset exceeds 1, it means that there are more long positions than short, indicating that traders are primarily betting on price increases.
Conversely, as is the case with XRP, when the ratio is below one, traders are betting on price declines. The long/short ratio remaining below 1 for several days underscores the prevailing bearish sentiment in the XRP market, signaling expectations of further declines.
Moreover, the weighted sentiment for XRP remains in negative territory, confirming the bearish outlook. At the time of writing, it stands at -0.40. The weighted sentiment analyzes social media and online platforms to assess the overall tone (positive or negative) surrounding the asset.
When the value of this indicator is negative, it indicates increased selling pressure and declining investor confidence. This puts XRP at risk of further price declines.
XRP on the edge: can selling pressure push the price below $2?
With the increase in short interest and heightened bearish bias, XRP risks dropping below the $2 mark. If the current trajectory continues and selling pressure intensifies, a decline below this psychological threshold could become a reality in the near term.
In this case, the price of XRP could reach $1.99 and fall to an annual low of $1.61. However, the resurgence of new demand for the altcoin could negate this bearish outlook. In that case, the price of XRP could exceed $2.29 and head towards $2.50.#Write2Earn #BinanceSquare #Squar2earn #xrp #Binance $XRP
