XRP is stuck in a Longing state, unlike Bitcoin and other cryptocurrencies that have reached new all-time highs (ATHs).
The lack of significant movement has prevented altcoins from rising. This has disappointed investors who were expecting a breakout. XRP's recent performance emphasizes the growing bearish sentiment among traders.
XRP Traders Losing Confidence in the Future
Traders are leaning towards shorting XRP. The Long/Short ratio currently shows that Short contracts dominate Long contracts, reflecting a monthly low. This imbalance highlights the bearish market sentiment, and investors expect XRP's price to decline rather than surge.
The dominance of Short contracts suggests that most traders are preparing for XRP's value to decrease rather than recover. This bearish outlook reflects the market's uncertainty and can put pressure on altcoin prices, especially if there is no significant bullish catalyst.
XRP's macroeconomic momentum also shows a bearish trend, with the Relative Strength Index (RSI) declining. This decline indicates that the bearish momentum is strengthening, adding to the challenges facing XRP. However, the RSI is still above the neutral line, suggesting that the selling pressure is not yet overwhelming.
The RSI's position leaves room for potential recovery, but the downward trend is a warning signal for cautious investors. If buying activity does not increase, XRP may face further corrections or a bearish breakout, emphasizing the need for traders to closely monitor the momentum.
XRP Price Prediction: Sideways Movement Expected in the Near Term
XRP is currently undergoing a correction between $2.73 and $2.00, trapped in this range for the past 3 weeks. This prolonged correction has prevented the altcoin from breaking out and forming a new ATH, making it vulnerable to market volatility.
The current ATH of $3.31 is 48% above XRP's trading price of $2.24. For XRP to target this level, it needs to break out of the current range and establish $2.73 as a support level. This move would signal new bullish momentum and set the stage for potential upside.
If XRP fails to maintain the crucial support level of $2.00, the bullish case will be invalidated. A drop below this level could lead to a sharp decline, putting the altcoin at risk of further losses.
