XRP continues to face downward pressure as trader sentiment turns increasingly bearish. Despite broader signs of recovery across the cryptocurrency market, XRP struggles to maintain momentum, leading many investors to bet against the token’s near-term prospects.
Currently trading below $2.20, XRP is witnessing a surge in short positions, highlighting skepticism about its ability to generate substantial upside. Analysts observe persistent bearish sentiment forming around the altcoin, with several indicators pointing to potential further declines.
XRP Traders Increase Bearish Positions
Market data from Coinglass shows a notable rise in short positions involving XRP. Over the past week, the token’s long/short ratio has remained under the key threshold of 1, settling at 0.93 as of the latest figures. This indicator reflects growing trader preference for shorting the asset, suggesting a lack of confidence in its upward trajectory. XRP wallet resources remain popular, but sentiment is turning cautious.
For context, the long/short ratio measures the number of long positions—bets on price rises—versus short positions, which anticipate price drops. A figure above 1 usually indicates bullish sentiment. XRP’s current ratio below this threshold underscores an overwhelming bias toward downside risks.
Sentiment Metrics Indicate Weak Demand
This bearish stance is further supported by sentiment analysis from major monitoring platforms. XRP’s weighted sentiment has remained negative, currently registering at -0.40. This value reflects increasing social media and community skepticism surrounding the token’s future. Whale activity and broader discussions continue to influence perceptions, but the tone remains cautious.
Weighted sentiment gauges public attitude by analyzing online mentions and moods. A negative value indicates rising selling pressure and investor uncertainty, both of which are weighing heavily on XRP at this moment.
Potential Break Below $2 Looms
The combination of subdued sentiment and elevated short interest puts XRP in precarious territory. Without a fresh injection of demand to counter current trends, the price risks dipping below the crucial $2 psychological support. Projections suggest that in a continued downtrend, prices could reach $1.99 or further descend toward the yearly low of $1.61.
If this narrative plays out, XRP may face intensified downward movement in the short-term. However, if new momentum gathers from investors or institutional interest, the token could push back above resistance levels around $2.29, possibly eyeing a return to the $2.50 mark. XRP NFT marketplaces may also play a role in boosting demand over time.
Even amid marketwide recovery, XRP remains one of the tokens battling negative traction, as on-chain data stresses caution. Traders are closely monitoring these critical price levels, aware that any break below the $2 line could set the tone for the coming weeks.
Moving forward, the outlook for XRP largely hinges on sentiment shifts and broader market cues. As long as short interest dominates and social metrics fail to rebound, XRP remains tethered to a cautious narrative, closely watching the $2 threshold for signs of stability or additional erosion.
