XRP's Price Plummets as Short Positions Surge

XRP's price outlook appears bleak as traders increase short positions and exchange inflows surge, according to recent market data. On Thursday, over $15 million worth of XRP flowed into centralized exchanges like Bybit and Kraken, suggesting a potential sell-off that could hinder any immediate price rally.

Short traders seem confident in their bearish bets, with XRP's perpetual funding rates standing at -0.0065% on Thursday morning. Negative rates indicate that short traders are paying long traders to maintain their bearish positions, reflecting a stronger bias for price drops compared to Bitcoin or Ethereum.

Technical indicators paint a mixed picture for XRP. The token trades below key moving averages, with immediate resistance at $2.49 and another hurdle at $2.60. Breaking past these levels could restore a bullish outlook. However, XRP's 14-day relative strength index (RSI) stands at 36, suggesting it's not yet oversold but remains in a neutral zone.