XRP Short Bets Rise as Price Risks Falling Below $2

Despite the broader cryptocurrency market showing signs of recovery, the sentiment around XRP remains negative. This altcoin continues to struggle below $2.20, with an increasing number of traders betting that the price will drop further.

Traders seem to have little belief that the token will see a significant price increase in the short term, with many continuing to bet against its potential price rise.

XTraders PredictEnd as Sentiment Worsens

According to Coinglass, there has been a continuous increase in short positions targeting XRP. The token's long/short ratio has remained below 1 for nearly two weeks, reflecting a growing preference for short trades. At the time of writing, this ratio was 0.93.

The XRP Long/Short Ratio compares the number of long positions (betting the price will increase) with short positions (betting the price will decrease) in the market.

When an asset's long/short ratio is above 1, there are more long positions than short positions, indicating indicating that traders are primarily mainly betting on price will on price increase.

ConversEly with Xthe below ,1are on a price decrease. A long/short ratio remaining below 1 for several days indicates a prevailing negative sentiment in the XRP market, signaling expectations of further XRP Weighted Sentiment. Source: Santiment

Weighted Sentiment analyzes social and online media platforms to assess the overall (positive or negative) sentiment around an asset.

When the index value is as negative as this, it indicates high selling pressure and diminished investor confidence.. This puts XRP at risk of continued price decline.

With the increase in short interest and increasingly negative trend, XRP risks slipping below the $2 mark. If the current trend continues and selling pressure increases, a price drop psychological threshold could occur in the short term.

In that scenario, XRP's price could might could $1.99 drop to and decline to the year's lowest level at $1.61.XRP Analysis. Source: TradingView

However, a new increase in demand for this altcouldcoinate negative forecast. In that case, XRP's break price might exceed $2.29 and move towards $2.50.