Ripple's XRP surged to a year-to-date high of $1.63 on November 23, but has since dropped to $1.44, marking a 6% fall in the past 24 hours. Despite the recent surge, bearish sentiment prevails, with many traders doubting the sustainability of the upward trend.
An increasing number of traders are opening short positions, betting on a price correction. This is reflected in a 9% decline in XRP's open interest, which now stands at $2.52 billion, indicating reduced market participation.
The Long/Short ratio for XRP is at 0.96%, with more short positions than long ones among traders. This imbalance suggests bearish market sentiment and hints at possible continued declines in XRP's price.
Currently, XRP is trading just above the $1.33 support level, but if bearish pressure continues, prices may fall to $1.15. Conversely, a positive shift in sentiment could see XRP challenge its $1.63 high again.
