XRP Futures Traders Anticipate Further Declines Amid 10% Price Dip

The larger cryptocurrency market has experienced a downturn since early February, contributing to a 10% decrease in XRP's value this past week, bringing its current trading price to $2.30.

This decline has heightened bearish sentiment among futures traders, prompting them to increase short positions as they bet against any potential recovery.

XRP Faces Intensifying Selling Pressure as Bearish Sentiment Grows

Ongoing price declines have reinforced the negative outlook surrounding XRP among futures traders. Recent on-chain metrics indicate a bearish bias, with the long/short ratio showing that more traders are favoring declines rather than rebounds this week, currently sitting at 0.99.

This ratio compares the number of traders betting on price increases against those betting on drops. A ratio above one indicates a majority betting on a price rise, whereas a ratio below one, as seen with XRP, signals a prevailing expectation of further declines, marking a strong bearish sentiment in the market.

Moreover, XRP's measured negative weighted sentiment aligns with this bearish outlook, registering at -0.66. This metric evaluates overall market sentiment by analyzing social media mentions and associated biases. A negative reading suggests that investor confidence is waning, leading to reduced trading activity and contributing to ongoing price drops.

XRP Hangs on Key Support Level

Since peaking at $3.40 on January 16, XRP has been trading within a descending triangle pattern, characterized by lower highs against a solid support level. This trend indicates increasing control by sellers. Currently priced at $2.30, XRP rests just above critical support at $2.27.

A breach of this support could exacerbate XRP's decline, potentially dropping to around $2.13. Further selling pressure at this juncture could lead to a more significant fall, possibly reaching $1.47.

If the market sentiment shifts positively, it may elevate XRP's demand and drive prices above the descending triangle, potentially reaching $2.81.