XRP, the native token of Ripple, is currently facing a bearish market sentiment with short positions worth $51.65 million built at the $1.951 level. The ongoing tariff wars and overall market conditions are contributing to the downward momentum of XRP. At present, the token is trading near $1.85 with a price surge of 6.50% over the past 24 hours. However, the trading volume has dropped by 10%, indicating lower participation from traders and investors. Despite the recent uptick in price, XRP seems to be bearish as it broke out of a bearish head and shoulders pattern on the daily timeframe and closed below a key support level at $1.95.
The break of the key horizontal support at $1.95 has opened up the possibility of a potential 35% price crash for XRP, with the token possibly dropping to the $1.20 level in the near future. The failure to hold above the 200 Exponential Moving Average on the daily timeframe further supports the bearish sentiment, indicating that sellers are in control of the market. Traders are currently looking for shorting opportunities as the price shows signs of upside momentum, with a strong bias towards bearish positions as reflected by the Long/Short Ratio of 0.98 at press time, indicating more short positions than long positions in the market.
According to data from the on-chain analytics firm Coinglass, traders are over-leveraged at $1.828 (support) and $1.951 (resistance) levels, with $22.50 million and $51.65 million worth of long and short positions built, respectively. These liquidation levels and trader positions reflect the current market sentiment and are likely to be triggered based on the movement of XRP price in either direction. If the price continues to decline and breaks below key support levels, it could lead to a significant sell-off in the market. Traders and investors are closely watching the price action of XRP and assessing their positions accordingly to capitalize on the bearish momentum in the coming days.
