XRP Faces 35% Crash Risk as Bearish Sentiment Persists

Generated by AI AgentCoin World
Tuesday, Apr 8, 2025 1:15 pm ET1min read
XRP
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XRP, the native token of Ripple, is currently facing a critical juncture that could potentially trigger a significant price decline. The asset is trading near $1.85, having experienced a 6.50% price surge over the past 24 hours. However, despite this recent uptick, the overall market sentiment remains strongly bearish, exacerbated by ongoing global economic uncertainties.

Technical analysis indicates that XRP has broken out of a bearish head and shoulders pattern on the daily timeframe, closing its daily candle below the neckline at $1.95. This break below the neckline, which has historically acted as a key support level since November 2024, suggests a potential 35% price crash, with XRP possibly dropping to the $1.20 level in the near future. The failure to hold above the 200 Exponential Moving Average (EMA) further supports this bearish outlook, indicating that sellers are currently in control of the market.

On-chain metrics also reflect this bearish sentiment. According to Coinglass, XRP’s Long/Short Ratio stands at 0.98, indicating a higher number of short positions compared to long positions. Traders are over-leveraged at $1.828 on the lower side and $1.951 on the upper side, with $22.50 million and $51.65 million worth of long and short positions built, respectively. These liquidation levels and trader positions are likely to be triggered if the XRP price moves in either direction, further amplifying the potential for a significant price fall.

The current market dynamics suggest that traders and investors are primarily looking for shorting opportunities, especially as the price shows signs of upside momentum. The bearish outlook is further supported by the recent price drop, which has failed to hold above the 200 EMA, indicating strong bearish sentiment and suggesting that sellers are currently in control. The ongoing tariff wars and other global economic uncertainties are also contributing to the bearish market sentiment, pushing the market further down.