The update and analysis of XRP's price on May 6 shows that the price action of XRP today, March 5, is facing obstacles. According to new derivative data from Coinglass, there is an increasing pessimistic sentiment surrounding the XRP token.
The long/short ratio is currently at 0.9406, a clear signal that many traders are betting on XRP's price decreasing rather than increasing.
This ratio has leaned towards a bearish trend for nearly two weeks, indicating a continued lack of strong buying confidence. While open interest has slightly decreased by 1.3%, derivative trading volume remains high, up 35% to $3.28 billion, indicating traders are moving in based on the price volatility of XRP.
How is the price of XRP performing on the chart?
Looking at the technical factors, the current price of XRP (via CoinMarketCap) shows that XRP is fluctuating around $2.14, very close to the key support level of $2.05. A break below this level could be the reason for XRP's price to drop further, causing a stronger decline, especially when the Relative Strength Index (RSI) is currently at 47.
The Relative Strength Index of XRP is in the neutral zone, with a slight downward trend, meaning momentum is weakening for XRP's price but has not yet reached the oversold level. This opens the door for more downward moves before any expected recovery.
The MACD (Moving Average Convergence Divergence) also presents a similar cautious picture. Both the MACD line and the signal line are nearly flat, hovering around the zero line, indicating a lack of strong momentum in either direction. A bearish crossover is forming, which could further drive selling pressure if confirmed in the upcoming sessions.
However, if market sentiment changes, Fibonacci levels will provide potential upside targets for XRP's price. Currently, the price is struggling below the $2.29 level (Fib 0.236). If XRP can reclaim $2.29 and break through the resistance at $2.40 (Fib 0.382) and $2.58 (Fib 0.618), the possibility of moving to the extended target of $3.32 (Fib 1.618) will become real.
Does Ripple News provide the fundamental context?
Adding to the overall market picture, Bloomberg reported that Ripple has submitted a $4–5 billion proposal to acquire Circle, the issuer of the USDC stablecoin. However, Circle has rejected this offer, citing it as undervalued, especially as the company prepares for an IPO on the New York Stock Exchange (NYSE).
Despite achieving $1.67 billion in revenue in 2024, Circle's net profit is only $156 million, mainly because 60% of this company's revenue belongs to partners like Coinbase.
From Ripple's perspective, this acquisition makes sense. Ripple recently launched its own stablecoin, RLUSD, with a market capitalization of $300 million. But with USDC's dominance of $61 billion in the same institutional stablecoin space, Ripple would benefit from acquiring Circle's infrastructure and user base.
