Ripple: Is there an end in sight to XRP’s bearish bias?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Sellers extended their dominance to wipe out more of XRP’s July gains.
- Short positions in the futures market amounted to $118.09 million, representing a large share of open contracts.
XRP’s price chart showed little signs of stabilizing, as the native token of the Ripple network continued its free fall. After the announcement of Ripple’s positive legal ruling propelled XRP to a record 2023 high in July, the steep losses have seen a significant portion of those gains wiped out.
Read Ripple’s [XRP] Price Prediction 2023-2024
A weak Bitcoin [BTC] has done little to help XRP, as the king coin continued its range formation between $28.9k – $29.3k.
Sellers smash through key price levels
Buyers haven’t been able to find any respite with sellers extending their dominance effortlessly. Drawing the Fib levels on the 12-hour timeframe showed the selling momentum crashing through major price support levels.
On 26 July, bulls attempted to stem the selling pressure at the 38.2% Fib level ($0.6947). Instead, sellers made a lower high at the 50% Fib level ($0.7252) before continuing the downtrend.
As of press time, the price bounced softly off the $0.5957 price level. A repeat of the bearish price action could see sellers use the 23.6% Fib level ($0.6568) as another lower high before extending the bearish momentum. If this plays out, targets for sellers will lie at $0.5200 – $0.5500.
The strong bearish momentum was echoed by the on-chart indicators. The RSI hovered just above the oversold zone while the MACD maintained its bearish slide below the zero mark after posting a bearish crossover.
A bullish reversal could be dependent on BTC breaking out of its range formation which could spur buyers into action with a break above $0.700 flipping XRP bullish.
Buyers overwhelmed by sellers in the futures market
How much are 1,10,100 XRPs worth today?
Data from Coinglass showed the immense advantage sellers currently have. Shorts held a 55.3% share of XRP’s open contract positions, amounting to $118.09 million worth of short positions.
With longs registering 80.3% of the liquidations over the past 24 hours, XRP’s bearish activity could extend significantly in the mid to long term.