- Traders’ Optimism vs. Reality:Â Despite a long-to-short ratio of 2.80 and 73.6% of Binance traders betting on XRP’s rise, the token has dropped over 6.5% in 24 hours, trading around $2.50 and struggling to regain key support levels.
- Support and Resistance Struggles:Â XRP failed to hold the $2.60 support, slipping below $2.50, with trading volume dropping by 65%. Analysts warn of a possible 25% drop to $1.95 if the price doesn’t stabilize soon.
- Liquidation Tensions:Â Major liquidation zones at $2.47 and $2.75 create intense pressure. If prices fall below $2.47, $22.68 million in long positions could be liquidated, while a climb to $2.75 could trigger a short squeeze on $99 million in short positions.
XRP, Ripple’s native cryptocurrency, has hit a rough patch recently, even as traders, particularly those on Binance, remain stubbornly optimistic. The market’s rollercoaster ride has caused more confusion than clarity, raising serious questions about XRP’s short-term outlook.
Traders Are Hopeful—But Reality Hits Hard
Data from Coinglass shows a long-to-short ratio of 2.80 for XRPUSDT, meaning there are almost three long positions for every short one. A whopping 73.6% of top traders on Binance are betting on XRP’s price rising. But here’s the catch—this optimism isn’t reflected in price action. XRP has dropped more than 6.5% in the last 24 hours, hovering around $2.50. Despite traders clinging to their bullish hopes, this drop has made many question whether a reversal is in sight anytime soon.
Struggling to Hold Support Levels
Earlier, XRP tried to stabilize near $2.60 but couldn’t maintain that level. It eventually slipped below $2.50, with trading volume plummeting by 65%. A lack of market participation hints that many traders are stepping back. If XRP can’t regain $2.50, it may face a deeper decline. Analysts warn that another 25% price drop could push XRP toward the $1.95 support zone. The RSI (Relative Strength Index) has fallen to 38, signaling oversold conditions. That might indicate a possible bounce—but don’t get too excited yet. XRP still faces an uphill battle.
Liquidation Pressure—A Tug of War
Liquidations are a growing concern. On the downside, $2.47 serves as a major liquidation zone where $22.68 million worth of long positions could be wiped out if prices continue falling. On the flip side, if XRP climbs to $2.75, approximately $99 million in short positions would be liquidated, potentially triggering a buying frenzy. This delicate balance between bulls and bears creates intense pressure, with each side trying to push prices toward their desired targets.
What’s Next for XRP?
The outlook doesn’t look too bright—at least for now. If XRP fails to reclaim support soon, further downside movement seems likely. Traders eyeing key resistance points should prepare for potential volatility as liquidation risks loom large. If prices drop further, the $1.95 support level could come into play. On the other hand, should XRP manage a meaningful rebound, clearing the $2.75 zone might restore some optimism.
In conclusion, XRP’s current predicament underscores the unpredictable nature of the market. Despite strong trader sentiment on platforms like Binance, the price trend suggests caution. Both long and short traders face significant risks tied to liquidation zones. For now, XRP holders may need to brace for continued turbulence before any signs of recovery emerge.
