As of the time of writing, XRP has seen a decline of nearly 8% in the past week, negatively impacting trader sentiment and triggering a wave of sell-offs in the futures market for this altcoin. As buying pressure weakens, XRP is facing the risk of plunging below the crucial support level of 2 USD in the near future.

XRP traders in the futures market are betting on a bearish trend

The XRP market is showing clear bearish signs, as evidenced by the taker buy/sell ratio of this token, which has consistently recorded negative values over the past two weeks. This indicates that sell orders are dominating buy orders in the XRP futures market. At the time of writing, this ratio is fluctuating around 0.92.

XRP Buy/Sell Ratio

The buy/sell ratio of an asset measures the ratio between the volume of buy and sell orders in the futures market for that asset. A value above 1 indicates that buy orders dominate over sell orders, while a value below 1 suggests that many traders are liquidating this asset.

The continuous decline in the XRP buy/sell ratio over the past few weeks indicates a strong wave of sell-offs is increasing among futures traders, many of whom are increasing their Short positions. This is clearly reflected in the token's Long/Short ratio, which is currently at 0.94.

To understand better, this index has consistently remained below 1 since May 8, indicating that traders have been preparing for a prolonged bearish trend for nearly a month.

XRP Long/Short Ratio | Source: Coinglass

The prolonged demand for Short positions indicates that the bearish trend of XRP is not just a reaction to short-term volatility, but also a sign that negative sentiment is increasing, due to expectations that prices will continue to fall.

Will XRP hold the 2 USD support level?

At the time of writing, XRP is trading at 2.13 USD. If bearish pressure continues to rise, this altcoin could drop below the psychological level of 2 USD. A breakdown of this crucial support level could prolong the current correction process, and the price of XRP could fall below 1.99 USD.

XRP Price Analysis

However, if new demand for this altcoin increases again, this bearish forecast could be invalidated. If buying pressure rises, the XRP token could see a price recovery and reach 2.29 USD.