XRP news today: XRP Plummets 15% in Week, Bearish Sentiment Dominates

XRP, a prominent cryptocurrency, has experienced a significant decline in its price over the past week, reaching a seven-day low of $2.09. This downward trend is supported by key indicators that suggest further downside movement in the near term. The demand for short positions has been steadily rising, indicating that traders are increasingly confident in the continued weakness of the XRP token. This trend reflects a growing bearish sentiment among market participants, who are positioning themselves for further price declines.

The long/short ratio of XRP, which compares the number of long and short positions in the market, stands at 0.98. This ratio below one indicates that more traders are betting against the altcoin, reflecting heightened bearish sentiment and expectations of continued downside movements. The last time the long/short ratio was above one was on April 22, marking over two weeks since bullish positions outnumbered bearish ones in the XRP futures market. This extended period of bearish dominance suggests that market participants have grown increasingly pessimistic about XRP’s short-term prospects.

On the daily chart, the Moving Average Convergence Divergence (MACD) indicator for XRP has formed a "death cross," a notable marker of a sustained downtrend. This pattern, where the MACD line closed below its signal line, is widely viewed by traders as a sign of weakening price strength. Consequently, XRP risks plummeting further, with the next key support level at $2.03. If selloffs strengthen, this support floor could weaken, making way for a price decline toward $1.61. Conversely, if the XRP token sees a spike in new demand, it could reverse the downtrend and climb to $2.29.

In summary, the recent decline in XRP’s price, coupled with the rising demand for short positions and the formation of a "death cross" on the daily chart, suggests a bearish outlook for the cryptocurrency. The long/short ratio below one further supports this sentiment, indicating that traders are positioning for further downside movements. While XRP currently holds key support at $2.09, the risk of a price decline toward $1.61 remains if selloffs strengthen. Conversely, a spike in new demand could reverse the downtrend and push the price toward $2.29. Overall, the market sentiment for XRP is bearish, with traders expecting further downside movements in the near term.

Ask Aime: Why has XRP's price plummeted to a seven-day low, and what does the future hold for the cryptocurrency?