After a significant price reversal, the cryptocurrency market is once again experiencing a dip, with various digital assets facing a decline in prices. Despite this downturn, XRP, the native token of Ripple Labs, continues to draw attention from crypto enthusiasts. According to on-chain analytics firm Coinglass, Binance traders are showing a strong bullish sentiment towards XRP, with a Long/Short ratio of 2.80, indicating that for every 2.80 long positions, there is only one short position.
Currently, 73.6% of the top XRP traders on Binance hold long positions, while 26.4% hold short positions. However, XRP is struggling to gain momentum and is trading near $2.50, experiencing a price drop of over 6.50% in the past 24 hours. The trading volume has also decreased by 65% due to market uncertainty.
XRP seems to be failing to hold its crucial support level of $2.60, which it previously achieved during a significant price reversal. If the asset fails to rebound and closes a daily candle below the $2.50 level, there is a strong possibility that it could drop by 25% to reach the next support level at $1.95. The Relative Strength Index (RSI) for XRP is at 38, indicating a potential price decline, while the 200 Exponential Moving Average (EMA) suggests an uptrend.
Traders holding long positions are liquidating as the bearish momentum continues. The major liquidation areas are near $2.47 on the lower side and $2.75 on the upper side, with traders being over-leveraged at these points. If the market sentiment remains the same and the price falls to $2.47, approximately $22.68 million worth of long positions will be liquidated. Conversely, if the price rises to $2.75, around $99 million worth of short positions will be liquidated.
Combining these on-chain metrics with technical analysis indicates that bulls are exhausted, and short-sellers are currently dominating XRP, potentially leading to further price decline. Despite the current challenges, XRP continues to be a focal point for traders and investors, with market dynamics constantly evolving in the volatile cryptocurrency space.