XRP Price Falls as Bears Tighten Control and Short Bets Surge

XRP investors are becoming increasingly pessimistic as the overall market sentiment weakens. In recent days, this altcoin has witnessed a decline in investor confidence.

Meanwhile, recent price action reflects the prevailing risk-averse sentiment in the cryptocurrency market space. This shift in sentiment has contributed to a 3% drop in the XRP Token price over the past three trading sessions.

XRP's Decline is Increasing

The XRP BBTrend indicator confirms that selling pressure is increasing in its spot market. Observed on a daily chart, the indicator is currently at -3.81. Since 07/06/2025, it has continuously displayed red histogram bars, with each bar growing larger across trading sessions.

BBTrend measures the strength and direction of a trend based on the expansion and contraction of Bollinger Bands. When it returns red bars, the asset is experiencing strong downward momentum and increased volatility below its moving average.

This signals increasing downward price pressure and the potential to continue XRP's current downward trend.

Furthermore, the Longing/Short Ratio of the Token has tilted towards short positions, indicating a significant increase in downward price pressure in its futures market. At the time of writing, this ratio is 0.92.

The Longing/Short ratio measures the ratio between price increase (Longing) and price decrease (Short) positions in the market. When the ratio is below one, as with XRP, more traders are betting on price decreases rather than increases.

With the Longing/Short Ratio dropping to 0.92, short bets are currently more dominant than long bets, reflecting a lack of confidence in XRP's short-term recovery.

XRP Risks Deeper Decline as Selling Pressure Increases

At the time of writing, XRP is trading at $2.24 with increasing selling pressure putting the Token at risk of deeper losses. If negative momentum continues, XRP's price may test support around $2.08, which would mark a break from its recent range.

On the other hand, if demand surges strongly, the XRP Token price could climb to resistance at $2.29. A successful breakout above this level could push the altcoin to $2.45.