XRP has fallen to $1.44, a 6% drop in the last 24 hours, shaking investor confidence. Short positions have outpaced long positions, while the Long/Short ratio has fallen to 0.96%. XRP’s main support level is $1.33, and if the price falls below this level, a decline to $1.15 is possible. On the other hand, the target for a bullish reversal is set at $1.63.
Ripple’s XRP reached a yearly high of $1.63 on Nov. 23. However, with rising expectations of a price drop and weakening bullish momentum, traders are starting to doubt the sustainability of the rally. Many investors, expecting a price correction in the short term, have started opening short positions.
This decline in the price of XRP is also evident in the futures market. According to Coinglass data, open interest decreased by 9% to $2.52 billion. Open interest refers to active contracts that have not yet been closed, and as prices fall, the closing of these positions indicates that market participation is decreasing and investors are closing their trades to secure their profits or reduce their losses. For XRP, this indicates that confidence in the uptrend has been shaken and a permanent reversal in price action may occur.
The Long/Short ratio for XRP also supports this decline. It currently stands at 0.96%, with 51% of total positions shorting XRP. The Long/Short ratio indicates the market’s bearish sentiment; when the ratio falls below 1, it indicates that short positions outnumber longs and investors are generally expecting a price decline.
The XRP price is currently trading around $1.44, testing the key support at $1.33. If the decline continues, it could drop below the $1.33 level, in which case XRP could drop to $1.15. However, if market sentiment shifts to the positive side, XRP could retarget $1.63 and attempt to break above that level.