XRP is under increasing pressure, since retailers switch heavily to short positions
XRP has come under increased sales pressure, has fallen by almost 10% in the past week, thus signaling deeper concerns among derivate retailers.
The decline has led to hectic activities on the appointment market, where many rely on further price losses.
The Altcoin now fluctuates near a critical support brand at $ 2, and the declining purchase dynamics could push it under this threshold at short notice. Important market indicators confirm this pessimistic outlook.
Cryptoquant data show that the ratio between purchases and sales of XRP futures has been below 1 for two weeks in a row and is currently 0.92. This key figure records the volume of purchase orders in relation to the sales orders in the appointment trade. A value under 1 indicates a clear dominance of the sellers, since more dealers make market sales than purchases.
The pessimistic trend is also evident in the long/short ratio, which has been below 1 since the beginning of May. According to the Coinglass, the ratio is currently 0.94-another signal that market participants rely on short positions and bet on a continued drop in price.
This shift is not only due to temporary volatility. The persistent preference for short positions indicates a broader market expectation that XRP will continue to fall, and the dealers adapt their strategies accordingly.
If the dynamics are not reversed and the demand from buyers returns, XRP could be exposed to further downward pressure at short notice, especially if the important technical levels do not hold.
