XRP Derivatives Data Reveals Rising Bearish Sentiment
The most recent insights into XRP derivatives suggest an increasing bearish outlook in the market. According to cryptocurrency analytics platform CoinGlass, the long/short ratio for XRP has dropped to 0.7797 as of April 18. This shift indicates that 56.19% of XRP positions initiated over the past 12 hours have been shorts, showing a preference towards selling the token.
Analyzing the Shift in XRP’s Long/Short Ratio
The current long/short ratio marks a noteworthy bearish trend, especially considering that the previous 12-hour window recorded 51.55% of positions as shorts. This current ratio is the most bearish stance observed for XRP since early April, highlighting a trend that traders should closely monitor.
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The Resilience of XRP Amid Market Volatility
Despite the apparent rise in bearish sentiment among derivatives traders, XRP’s price movements reveal a different narrative. Currently, XRP is trading at $2.08, reflecting a daily decrease of 1.36%, yet still maintaining a weekly gain of 4.07%. The token has repeatedly rebounded from the $2.05 level, underscoring significant support at this price point even after failing to stay above $2.20 reached on April 13.
Impact of Open Interest and Whale Movements on XRP
Moreover, the open interest in XRP derivatives is approaching a one-year low, suggesting a considerable decline in trading volume. This decrease in trading activity may mitigate the impact of the recent increase in short positions. Despite the bearish undertone, XRP whales have offloaded approximately 370 million tokens since the start of the year. Yet, the Relative Strength Index (RSI) stands at 45, indicating that the token is not in an overbought or oversold condition.
Future Outlook for XRP
Taking all factors into account, substantial downward movements for XRP appear less likely compared to potential sideways price action. This nuanced perspective should be considered by traders and investors when making future decisions about XRP investments.
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