XRP Futures Traders Double Down on Bearish Bets Amid 10% Price Drop

XRP Futures Traders Bet Against Recovery Amid 10% Weekly Price Slump

XRP, the fourth-largest cryptocurrency by market capitalization, has experienced a 10% decline in its price over the past week, trading at $2.30 as of this writing. This downturn has intensified bearish sentiment among XRP futures traders, who have increased their short positions in anticipation of further price declines.

On-chain data reflects this pessimism, with XRP's long/short ratio indicating that more traders are betting on a continued downtrend rather than a rebound. The ratio currently stands at 0.99, suggesting that traders are largely betting on a price decline. This signals strong bearish sentiment in the market, reinforcing the likelihood of further downside.

Additionally, XRP's negative weighted sentiment confirms this bearish bias. At press time, this metric is below zero at -0.66, indicating that investors are increasingly skeptical about XRP's near-term outlook. This skepticism is prompting traders to reduce their positions, exacerbating the price dip.

XRP's price has been trading within a descending triangle pattern since reaching an all-time high of $3.40 on January 16. This bearish pattern suggests that sellers are gaining control, and a breakdown below support could lead to further declines. At present, XRP is trading slightly above its support level at $2.27. If this line breaks, XRP's price could drop to $2.13, and if selling pressure intensifies at this level, the token's value could further dip toward $1.47.

However, if market sentiment becomes bullish, it could drive up XRP's demand and cause its price to break above the descending triangle to reach $2.81. This would indicate a potential recovery in XRP's price.