XRP's Turbulent Ride - Bearish Momentum Dominates
Ripple's short sellers remain dominant, leaving question marks over a potential plunge below $2.05.
XRP's journey in the crypto market has been a rollercoaster, with bears reining supreme as of late. That's right, the derivatives market's steep curve shows more traders are taking the bearish bet on XRP than placing bullish bets. According to Coinglass data, the long/short ratio for XRP is a mere 0.9205. This number smaller than 1 indicates bearish sentiment ruling the roost for nearly two weeks.
The drop in open interest by 1.92% might seem concerning, but the derivatives volume saw a surprising 35% jump to a whopping $3.28 billion. The action is undeniably active, though it's the short side of the trade that's abuzz with activity. Traders are keen on short positions, anticipating a plunge.
XRP Finds Support at $2.05 but Bears Aren't Done Yet
With XRP trading at $2.14, it's teetering on a crucial support level of $2.05. A crack below this support could trigger more sharp declines. The relative strength index is unperturbed at 47 but is trending downward. It's not oversold yet, leaving room for further declines.
The moving average convergence divergence is flashing red, suggesting a building downside momentum. The average directional index of 11 implies choppy sideways movement, hinting at lack of a defined trend. Most of the short- and medium-term moving averages are suggesting sell signals.
Despite the bearish short-term outlook, XRP's fundamentals seem steady. The regulatory burden has eased up as Ripple resolved its legal disputes with the SEC. There's rising interest in a potential spot XRP exchange-traded fund (ETF), with Bloomberg analysts predicting an 85% chance of approval by the end of 2025. XRP ETFs could boost institutional demand and inflate prices significantly.
Ripple's ambitious goals are still alive, as evidenced by the unsuccessful $4-5 billion bid to purchase stablecoin issuer Circle. However, the macroeconomic landscape remains challenging. Risk sentiment is wobbly due to ongoing tariff policies and persistent inflation. Key events like the May 7 Fed interest rate decision and May 13 CPI data are under the spotlight, as they have the potential to sway crypto markets, including XRP.
Should XRP dip below the support at $2.05, it could slide down to the $1.98-$2.00 range, where the 200-day support resides. But don't count the bulls out quite yet. If XRP can muster a bounce from this range and breach the $2.20 mark, it could swing the pendulum back in its favor. For now, the odds aren't exactly in its favor.
The Next Leap - A Possible XRP ETF and $10 by 2026
The path ahead seems uncertain, but if the stars align, analysts predict a big move for XRP. A possible XRP ETF approval and a strong regulatory stance could pave the way for XRP to hit the $10 mark by 2026.
While it's hard to predict where XRP will end up, some analysts are keeping an eye on the narrowing Bollinger Bands—a potential sign of a big move. However, this tightness appears while XRP is testing support levels, which points towards a possible decline rather than an upward swing.
Stay tuned as XRP makes its way through the crypto landscape. Keep your eyes open for any regulatory updates and potential developments like an XRP ETF.
- The derivatives market's steep curve shows more traders are taking the bearish bet on XRP, with the long/short ratio for XRP at a mere 0.9205, indicating a bearish sentiment.
- XRP is trading at $2.14 and teetering on the support level of $2.05, with a crack below potentially triggering more sharp declines.
- The moving average convergence divergence is flashing red, suggesting a building downside momentum for XRP, while the average directional index of 11 points toward choppy sideways movement.
- Ripple's regulatory burden has eased as Ripple resolved its legal disputes with the SEC, and there's rising interest in a potential spot XRP exchange-traded fund (ETF).
- Bloomberg analysts predict an 85% chance of XRP ETF approval by the end of 2025, which could boost institutional demand and inflate prices significantly.
- Ripple's ambitious goals are still alive, as evidenced by the unsuccessful $4-5 billion bid to purchase stablecoin issuer Circle.
- If the stars align, analysts predict a big move for XRP, with a possible XRP ETF approval and a strong regulatory stance paving the way for XRP to hit the $10 mark by 2026.
