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XRP Price Slips as Bears Tighten Grip and Short Bets Surge

2 mins
Updated by Ann Maria Shibu
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In Brief

  • XRP experiences waning investor confidence, leading to a 3% price drop in the past three days amid broader market weakness.
  • The BBTrend indicator shows strengthening sell-side pressure, with red histogram bars signaling increasing bearish momentum.
  • XRP's Long/Short Ratio of 0.92 indicates more traders are betting on a price decline, suggesting further bearish sentiment in the market.
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XRP holders are growing increasingly bearish as broader market sentiment weakens. Over the past few days, the altcoin has seen waning investor confidence.

At the same time, the recent price action reflects the risk-off mood dominating the crypto market asset space. This shift in sentiment has contributed to a 3% decline in the XRP token price over the last three trading sessions.

XRP Bears Gain Momentum

An assessment of XRP’s BBTrend indicator confirms the strengthening sell-side pressure in its spot market. Observed on the one-day chart, the indicator currently sits at -3.81. Since June 7, it has consistently posted red histogram bars, each growing larger with every trading session.

XRP BBTrend.
XRP BBTrend. Source: TradingView

The BBTrend measures the strength and direction of a trend based on the expansion and contraction of Bollinger Bands. When it returns red bars, the asset in question is experiencing strong downward momentum and increased volatility below its moving average. 

This signals growing bearish pressure and a potential continuation of XRP’s current downtrend.

Further, the token’s Long/Short Ratio has tilted in favor of short positions, signaling a marked increase in bearish pressure in its futures markets. As of this writing, this is at 0.92.

XRP Long/Short Ratio.
XRP Long/Short Ratio. Source: Coinglass

The long/short ratio measures the proportion of bullish (long) positions to bearish (short) positions in the market. When the ratio is below one, as with XRP, more traders are betting on a price decline than on a price increase.

With the Long/Short Ratio slipping to 0.92, bearish bets now outweigh bullish ones, reflecting a lack of confidence in XRP’s short-term recovery.

XRP Risks Deeper Fall as Sell-Side Heat Builds

At press time, XRP trades at $2.24 with the growing sell-side pressure putting the token at risk of deeper losses. Should the negative momentum persist, XRP’s price could test support around the $2.08 level, which would mark a breakdown from its recent range.

XRP Price Analysis.
XRP Price Analysis. Source: TradingView

On the other hand, if demand rockets, the XRP token price could climb toward the resistance at $2.29. A successful break above this level could propel the altcoin to $2.45.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a Technical and On-Chain Analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment...
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