Aptos (apt) 
XRP Faces Bearish Pressure as Short Positions Dominate the Market
XRP continues to experience bearish sentiment in the cryptocurrency market, with short positions dominating the derivatives sector. Recent data indicates that more traders are betting on a decline in XRP’s price rather than a rally, signaling persistent downward pressure.
Market Sentiment and Derivatives Data
According to market analysis, the long/short ratio for XRP currently stands at 0.9205, showing that bearish traders are in the majority. For nearly two weeks, this ratio has remained below 1, further reinforcing the negative outlook. Despite a 1.92% drop in open interest, derivatives trading volume surged by 35% to $3.28 billion. This spike in activity reveals that traders are actively positioning for further downside in XRP’s price.
XRP Technical Analysis
On the technical side, XRP is trading at $2.14, hovering just above a critical support level at $2.05. If this level is breached, the cryptocurrency could face steeper short-term declines. The Relative Strength Index (RSI) is neutral at 47 but shows a declining trend, leaving room for further downside before entering oversold territory.
Additionally, the Moving Average Convergence Divergence (MACD) recently turned negative, indicating that downside momentum might be building. The Average Directional Index (ADX), which measures trend strength, is extremely low at 11, suggesting that the market is currently in a period of choppy sideways action rather than a defined trend. Most short- and medium-term moving averages are also signaling “sell,” reinforcing the bearish outlook.
Bollinger Bands Indicate Potential Volatility
The narrowing of Bollinger Bands suggests that a significant price move could be imminent. However, as XRP tests its support level, the likelihood of a downward move appears higher than a rebound. Traders should closely monitor the $2.05 support level, as a break below it could push XRP toward the $1.98–$2.00 range, where 200-day support lies.
Fundamental Outlook for XRP
While the short-term technical setup is bearish, XRP’s fundamentals remain solid. Ripple recently resolved a major regulatory challenge by settling its legal dispute with the Securities and Exchange Commission (SEC). This resolution has eased some of the uncertainty surrounding the cryptocurrency.
There is also growing interest in a potential spot XRP exchange-traded fund (ETF). Analysts predict an 85% chance of approval for such an ETF by the end of 2025. If approved, this could significantly boost institutional demand for XRP and drive up its price.
Ripple’s recent $4–5 billion bid to acquire stablecoin issuer Circle, though unsuccessful, highlights the company’s ambitions for growth and innovation in the blockchain space. These developments underscore Ripple’s commitment to expanding its ecosystem and strengthening its position in the market.
Macroeconomic Challenges and Key Levels to Watch
Despite these positive fundamentals, broader macroeconomic challenges persist. Factors such as inflation and geopolitical uncertainty, including tariff policies, continue to impact risk sentiment across financial markets. Additionally, upcoming events like the Federal Reserve’s May 7 interest rate decision and May 13 Consumer Price Index (CPI) data could influence cryptocurrency prices, including XRP.
If XRP fails to hold the $2.05 support level, it may test lower levels around $1.98–$2.00. On the other hand, a successful rebound from this range could set the stage for a recovery. Should XRP manage to break above $2.20, it could regain bullish momentum. However, current market conditions suggest that such a move is unlikely in the short term.
Traders and investors should remain cautious while monitoring key support and resistance levels to navigate the ongoing volatility in the XRP market.
