The price of XRP has significantly decreased over the past week. Currently, the token is trading at a seven-day low of $2.09, and key indicators suggest that the downward trend may continue in the short term.
Market data shows steady growth in demand for short positions. This trend indicates increasing trader confidence in further declines, as short sellers increase their exposure in anticipation of further weakness in the XRP token.
XRP Faces Prolonged Selling Pressure
The long/short positions ratio of XRP reflects the prevailing bearish bias in its futures market. At the time of publication, the ratio stands at 0.98, indicating that more traders are betting against the altcoin. This ratio compares the number of long and short positions in the market. When the long/short positions ratio of an asset exceeds 1, it means there are more long positions than short, indicating that traders are predominantly betting on price increases.
Conversely, as seen with XRP, a ratio below one indicates that most traders are bearish on price. This reflects increased bearish sentiment and rising expectations for further downward movements.
According to Coinglass, XRP last recorded a long/short positions ratio above one on April 22. This means it has been over two weeks since bullish positions exceeded bearish ones in the XRP futures market. The prolonged period of bearish dominance indicates that market participants have become increasingly pessimistic about XRP's short-term prospects.
On the daily chart, the newly formed 'death cross' on the Moving Average Convergence Divergence (MACD) indicator for XRP supports this bearish outlook. Indicators from the daily XRP/USD chart showed that the MACD line (blue) closed below its signal line (orange) on Monday, forming a death cross. This pattern is a notable marker of a sustained downward trend and is widely viewed by traders as a sign of weakening price strength. Therefore, XRP risks further declines.
XRP holds key support at $2.09 — but for how long?
Currently, XRP is trading at $2.10, above the support formed at $2.03. If selling intensifies, the support floor may weaken, leading to a price drop to $1.61. On the other hand, if the XRP altcoin experiences a surge in new demand, it could change the downward trend and raise the price to $2.29.#BinanceSquare #Write2Earn #Squar2earn #xrp #MarketPullback $XRP
