XRP Bulls Run Into Trouble, Will It Fall to $1.95?

After an impressive price reputation, the cryptomarkt seems to be again confronted with a dip over different cryptocurrencies. In the midst of this, XRP, the native token of Ripple Labs, receives considerable attention from crypto enthusiasts despite the continuous price decrease, as reported by the ON-chain analysis company Coinglass.

The rising bets of Binance traders in long positions

The Metric Binance XRPUSDT-Lang/short ratio on the chains is currently 2.80, which indicates a strong bullish sentiment among traders. However, this metric also reveals that there is a single short position for every 2.80 long positions.

Moreover, the data also shows that, at the time of the press, 73.6% of the top XRP traders hold long positions in Binance, while 26.4% hold short positions.

Current price momentum

All this interest from Binance traders, however, comes while XRP has difficulty getting Momentum. The active is currently being traded in the vicinity of $ 2.50 and has experienced a price fall of more than 6.50% in the last 24 hours.

Because of this market uncertainty, the participation of traders and investors has fallen, resulting in a fall of 65% in trade volume.

XRP -Price promotion and key levels

With this remarkable price decrease, XRP does not seem to keep its crucial level of support of $ 2.60, which it has reached during the considerable price reverse.

Source: Trade reproduction

Based on the recent price action and the historical momentum, if XRP does not return and a daily candle closes below the $ 2.50 level, there is a strong possibility that it could fall by 25% to the next support at $ level 1.95.

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In the meantime, XRPs is relative strength index (RSI) at 38, indicating that it can get a price decrease because of the weak strength. Moreover, the 200 exponential advancing average (EMA) of the asset is still below the price, which indicates an uptrend.

Large liquidation areas

With the Bearish price momentum, traders seem to be liquidating with long positions. From now on, the major liquidation areas are almost $ 2.47 at the bottom and $ 2.75 at the top, where traders are used too much on these points.

Source: Coinglass

If the current market sentiment remains unchanged and the price drops to the level of $ 2.47, almost $ 22.68 million will be liquidated in long positions. Conversely, if the sentiment shifts and the price rises to the $ 2.75 level, around $ 99 million is liquidated in short positions.

When combining these on-chain statistics with the technical analysis, it seems that bulls are exhausted and that Kortkopers are currently actively dominating it, which can lead to further price decrease.

Credit : coinpedia.org