Despite recent signs of recovery across the broader cryptocurrency market, sentiment around Ripple’s XRP remains bearish. The altcoin continues to struggle below $2.20, as more traders are now betting that the price will dip further.
Traders appear unconvinced that the token will stage a meaningful price surge in the near term, with many continuing to bet against its upside potential.
XRP Traders Eye Further Downside as Sentiment Sours
According to Coinglass, there has been a consistent increase in short positions targeting XRP. The token’s long/short ratio has remained below 1 for nearly two weeks, reflecting a growing preference for short trades. At press time, this ratio sits at 0.93.
The XRP Long/Short ratio compares the number of long positions (bets that the price will rise) to short positions (bets that the price will fall) in a market.
When an asset’s long/short ratio is above 1, there are more long than short positions, indicating that traders are predominantly betting on a price increase.
Conversely, as with XRP, when the ratio is below one, traders are betting on a price decline. The long/short ratio remaining below 1 for some days highlights a prevailing bearish sentiment in the XRP market, signaling expectations of further downside.
Additionally, XRP’s weighted sentiment has stayed in negative territory, reaffirming the bearish outlook. As of this writing, it is at -0.40.
The weighted sentiment analyzes social media and online platforms to gauge the overall tone (positive or negative) surrounding an asset.
When this metric’s value is negative like this, it points to heightened sell-side pressure and fading investor confidence. This puts XRP at risk of extending its price dip.
XRP on the Brink: Could Selling Pressure Push Price Below $2?
With short interest climbing and bearish bias strengthening, XRP risks slipping below the $2 mark. If the current trajectory continues and selling pressure intensifies, a decline under this psychological threshold could materialize in the near term.
In that scenario, XRP’s price could reach $1.99 and fall toward the year-to-date low of $1.61.
However, a resurgence in new demand for the altcoin could invalidate this bearish projection. In that case, XRP’s price could break above $2.29 and trend toward $2.50.
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