XRP Faces Bearish Pressure as Short Positions Surge
Traders are betting against XRP, with short positions dominating the market. coinglass data shows a long/short ratio of 0.9205, indicating more traders expect a price drop. This ratio has been below 1 for nearly two weeks, signaling bearish sentiment.
Despite a 1.92% drop in open interest, derivatives volume rose 35% to $3.28 billion. This suggests active trading, but mostly on the short side. XRP is currently at $2.14, just above a key support level of $2.05.If this level breaks, a steeper decline could follow.
Technical indicators are mixed.The relative strength index is neutral at 47, but declining. The moving average convergence divergence has turned negative, hinting at growing downside momentum. The average directional index is low at 11, showing choppy action rather than a strong trend.
A narrowing of the Bollinger Bands suggests a big move is possible. Though, with XRP testing support, a decline seems more likely. Despite the bearish setup, XRP’s fundamentals remain strong.Ripple recently resolved its SEC dispute, and a spot XRP ETF could be approved by 2025, boosting institutional demand.
macroeconomic challenges persist, with President Trump’s tariff policies and inflation affecting risk sentiment. The Federal Reserve’s interest rate decision and CPI data in may could impact XRP’s price. If XRP falls below $2.05, it may drop to $1.98–$2.00. Though, a bounce above $2.20 could shift momentum in favor of bulls.
