The current volatility in the cryptocurrency market has left traders and investors confused. Amid this, XRP, the native token of Ripple Labs, is poised for a price decline as sentiment among crypto enthusiasts shifts toward the bearish side.
70 Million XRP Dump Onto Exchanges
Recently, a prominent crypto expert posted on X (formerly Twitter) that crypto whales have dumped over 70 million XRP tokens onto exchanges in the past four trading days. This massive sell-off has garnered significant attention from crypto participants.
Based on recent price action and historical momentum, there is a strong possibility that XRP could drop by over 8.5% to reach its support level at $2.75.
Despite the bearish market outlook, the altcoin has managed to hold above the 200 Exponential Moving Average (EMA) on the daily timeframe, suggesting that XRP is in an uptrend.
Traders’ Bearish Outlook
Looking at the bearish price action, traders are strongly betting on the downside, as revealed by CoinGlass data. At press time, $2.91 is a level where bulls are over-leveraged, holding $28 million worth of long positions. Conversely, short sellers are over-leveraged at the $3.10 level, holding $56.30 million worth of short positions.
This data indicates that short sellers are dominating the asset and could trigger a liquidation of the bulls’ open positions if the price falls below the $2.91 level.
Read the full article here
