- Traders are over-leveraged at $1.828 on the lower side (support) and $1.951 on the upper side (resistance).
- Short positions worth $51.65 million have been built at the $1.951 level in the hope that the price won’t move above this resistance.
XRP, Ripple’s native token, looks poised to continue its downward momentum in the coming days.
The current market sentiment is strongly bearish, and the ongoing tariff wars, which show no signs of ending soon, are pushing the market further down.
Current price momentum
At press time, XRP was trading near $1.85 and had recorded a price surge of 6.50% over the past 24 hours.
During the same period, the asset’s trading volume dropped by 10%, indicating lower participation from traders and investors compared to previous days.
Despite this upside momentum, XRP appeared bearish. According to AMBCrypto’s technical analysis, the asset recently broke out of a bearish head and shoulders pattern on the daily timeframe.
Additionally, XRP closed its daily candle below the neckline at $1.95, which partially confirmed a further price decline in the coming days.
Source: TradingView
Can a 35% crash happen?
This neckline was also a key horizontal support that XRP had been respecting since November 2024.
Previously, whenever the asset’s price has reached this level, it consistently experienced upside momentum or a price rebound. However, this time, it has finally broken below it.
Based on the recent price action and historical patterns, the break of this key level has opened the path for a potential 35% price crash, with XRP possibly dropping to the $1.20 level in the near future.
Meanwhile, with the recent price drop, XRP has also failed to hold above the 200 Exponential Moving Average (EMA) on the daily timeframe.
Trading below the 200 EMA indicates strong bearish sentiment and further suggests that sellers are currently in control.
During such events, traders and investors mostly look for shorting opportunities once the price shows some signs of upside momentum.
Bearish on-chain metrics
Looking at the bearish outlook, traders seem to be following the same sentiment as they are strongly betting on the bearish side, according to the on-chain analytics firm Coinglass.
Notably, XRP’s Long/Short Ratio stood at 0.98 at press time, indicating a bearish bias among traders. Additionally, there were more short positions than long positions in the market.
Source: Coinglass
$51.65 million worth of bearish bets
Coinglass data further revealed that traders were over-leveraged at $1.828 on the lower side (support) and $1.951 on the upper side (resistance), with $22.50 million and $51.65 million worth of long and short positions built, respectively.
These liquidation levels and trader positions clearly reflect the current market sentiment.
Source: Coinglass
These liquidation levels and trader positions are likely to be triggered if the XRP price moves in either direction.
