- XRP Faces Increasing Bearish Pressure: Down 10% in a week, now trading at $2.30, as futures traders heavily short the asset, expecting further declines.
- Key Support at $2.27 Being Tested: XRP remains in a descending triangle pattern, with a breakdown potentially leading to $2.13 or even $1.47 if selling pressure intensifies.
- Potential for a Bullish Reversal: If market sentiment improves, XRP could break out of its bearish structure and rally toward $2.81, but buying momentum remains weak for now.
The broader market downturn since early February has taken a toll on XRP, with the fourth-largest cryptocurrency by market cap losing 10% over the past week. Now trading at $2.30, XRP is facing increasing bearish pressure as futures traders ramp up their short positions, betting on further declines.
XRP Futures Traders Bet Against a Rebound
XRP’s persistent downtrend has reinforced negative sentiment, with futures traders heavily shorting the asset. On-chain data reflects this growing pessimism, as XRP’s long/short ratio currently stands at 0.99, meaning more traders are positioning for downside than a price recovery.
A long/short ratio below 1.0 suggests traders expect more declines, reinforcing the likelihood of further downside movement.
Adding to the bearish outlook, XRP’s weighted sentiment remains negative, currently at -0.66. This metric, which tracks social media sentiment alongside trading volume, suggests that investor skepticism is growing. When sentiment is negative, traders tend to stay on the sidelines, reducing demand and further dragging down the price.
source: santiment
XRP Teeters on Key Support—Will It Hold?
Since hitting its all-time high of $3.40 on January 16, XRP has been trading within a descending triangle pattern. This bearish setup forms when an asset makes lower highs while holding a horizontal support level, indicating that sellers are in control and a breakdown could be imminent.
At the time of writing, XRP is sitting at $2.30, just above its critical support at $2.27. If this level fails to hold, the next target is $2.13, and if selling pressure intensifies, XRP could slide as low as $1.47.
On the flip side, if sentiment shifts bullish, increased buying pressure could push XRP above the descending triangle, triggering a rally toward $2.81.
Final Thoughts—More Downside or a Potential Breakout?
For now, XRP remains at a crossroads. If the $2.27 support level holds, there’s a chance for consolidation or even a short-term bounce. However, if it breaks below this level, traders should brace for a deeper correction toward $2.13 or even lower.
With sentiment still negative and traders betting against a recovery, XRP needs a strong shift in demand to reverse its downward trend.
