Short selling XRP bets increase as the price risks falling below $2

Despite recent signs of recovery across the crypto market in general, sentiment surrounding Ripple's XRP remains pessimistic. This alternative currency continues to struggle below the $2.20 level, as many traders are currently betting that the price will fall further. Traders seem to not believe that this token will create a significant price increase in the near future, as many continue to bet on its potential price rise. XRP traders are eyeing further fall as sentiment worsens. According to Coinglass, there has been a continuous increase in short positions targeting XRP. The buy/sell ratio of this token has remained below 1 for nearly two weeks, reflecting a growing interest in short selling. At the time of the press report, this ratio was 0.93.

The Long/Short ratio of XRP compares the number of long positions ( betting that the price will rise ) with short positions ( betting that the price will fall ) in a market. When the long/short ratio of an asset is greater than 1, there are more long positions than short positions, indicating that traders are mainly betting on the price rising. Conversely, like XRP, when the ratio is below one, traders are betting on price declines. The long/short ratio remains below 1 on several days, highlighting the bearish sentiment prevailing in the XRP market, signaling expectations for further declines. In addition, the weighted sentiment of XRP remains negative, reaffirming the bearish outlook. As of the time of writing this article, it stands at -0.40.

Sentiment analysis weighs social media and online platform to assess the overall tone ( positive or negative ) around an asset. When the value of this metric is negative like this, it indicates high selling pressure and diminishing investor confidence. This poses a risk for XRP to continue its downtrend. XRP is on the verge: Could selling pressure push the price below 2 dollars? With short-term interest rates rising and a strong downward trend, XRP is at risk of slipping below the $2 level. If the current trajectory continues and selling pressure intensifies, a decline below this psychological threshold could occur in the near future. In that scenario, the price of XRP could reach $1.99 and fall to a yearly low of $1.61.

However, the new demand for this altcoin may invalidate this bearish forecast. In that case, the price of XRP may surpass the $2.29 level and trend towards $2.50.