XRP holders are growing increasingly bearish as broader market sentiment weakens. Over the past few days, the altcoin has seen waning investor confidence.
At the same time, the recent price action reflects the risk-off mood dominating the crypto market asset space. This shift in sentiment has contributed to a 3% decline in the XRP token price over the last three trading sessions.
XRP Bears Gain Momentum
An assessment of XRP’s BBTrend indicator confirms the strengthening sell-side pressure in its spot market. Observed on the one-day chart, the indicator currently sits at -3.81. Since June 7, it has consistently posted red histogram bars, each growing larger with every trading session.
The BBTrend measures the strength and direction of a trend based on the expansion and contraction of Bollinger Bands. When it returns red bars, the asset in question is experiencing strong downward momentum and increased volatility below its moving average.
This signals growing bearish pressure and a potential continuation of XRP’s current downtrend.
Further, the token’s Long/Short Ratio has tilted in favor of short positions, signaling a marked increase in bearish pressure in its futures markets. As of this writing, this is at 0.92.
The long/short ratio measures the proportion of bullish (long) positions to bearish (short) positions in the market. When the ratio is below one, as with XRP, more traders are betting on a price decline than on a price increase.
With the Long/Short Ratio slipping to 0.92, bearish bets now outweigh bullish ones, reflecting a lack of confidence in XRP’s short-term recovery.
XRP Risks Deeper Fall as Sell-Side Heat Builds
At press time, XRP trades at $2.24 with the growing sell-side pressure putting the token at risk of deeper losses. Should the negative momentum persist, XRP’s price could test support around the $2.08 level, which would mark a breakdown from its recent range.
On the other hand, if demand rockets, the XRP token price could climb toward the resistance at $2.29. A successful break above this level could propel the altcoin to $2.45.
Disclaimer
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