XRP Rally Collapses; Futures Bets Signal More Pain Ahead
Ripple’s XRP is losing momentum as traders pile into shorts and key support levels face pressure, raising the risk of a deeper pullback.
Ripple’s XRP has tumbled since reaching a 30-day high of $3.18 on Saturday, losing nearly 10% in just three days.
The pullback has raised fresh concerns with on-chain and technical data suggesting that the decline may not be over yet.
XRP Bears Take Charge
Data from derivatives markets indicates mounting bearish pressure. Per Coinglass, XRP’s long/short ratio has dropped to a 30-day low of 0.83, suggesting that many traders are betting on further downside through short positions.
For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter .
XRP Long/Short Ratio. Source:
Coinglass
An asset’s long/short ratio compares the number of its long and short positions in the market. When its value is above 1, there are more long than short positions, indicating that traders are predominantly betting on a price increase.
Conversely, as is the case with XRP, when the ratio is under one, most traders are positioning for a price drop. This indicates that its futures traders no longer view the token’s momentum as sustainable. Instead, they are gearing up for a deeper retracement.
Moreover, readings from the XRP/USD one-day chart show that the altcoin is trading near its 20-day Exponential Moving Average (EMA) and appears poised to break below it.
XRP 20-Day EMA. Source:
TradingView
The 20-day EMA measures an asset’s average price over the past 20 trading days, giving weight to recent prices. When prices hold above this moving average, it reflects underlying bullish momentum and investor confidence.
However, XRP’s current struggle near this level signals that buyers are losing control. A decisive breach of the 20-day EMA would confirm a bearish flip in market sentiment, opening the door for more losses as selling pressure worsens.
XRP at Risk of July Lows if Bulls Fail to Hold Support
A break below the 20-day EMA could trigger an XRP price decline toward $2.8786. If the bulls fail to defend this support floor, the altcoin could face a further dip to $2.6371, a low it last reached in July.
XRP Price Analysis. Source:
TradingView
However, an uptick in fresh demand would invalidate this bearish outlook. In this scenario, XRP could regain strength and climb to $3.2226.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Bank of England keeps interest rates unchanged as expected and slows the pace of balance sheet reduction.
The Bank of England reiterated its cautious stance on future interest rate cuts, emphasizing that inflationary pressures remain significant. The government's autumn budget may become the decisive factor for the interest rate cut path for the remainder of the year.
Highlights of the Federal Reserve FOMC Statement and Powell's Press Conference
This FOMC decision and Powell’s speech sent a clear signal: the Federal Reserve is resuming rate cuts, but at a more cautious pace, with the core focus on balancing inflation stickiness and the risk of a slowdown in employment.
Initial Jobless Claims Data Stages a "Magic Show": From the Highest in Nearly Four Years to the Largest Drop in Nearly Four Years in an Instant!
Just a week ago, initial jobless claims had surged to their highest level in nearly four years, sparking market concerns over a spike in layoffs. However, the latest data released today presents a dramatic turnaround.
Tokenized Deposits Used to Optimize Cross-Border Settlements
Trending news
MoreCrypto prices
More
