Despite a judicial setback for the SEC, XRP price struggles to meet buyer demand. While a brief surge of bullish momentum made aggressive purchases, it ultimately failed to withstand rising selling pressure near its top. As a result, sellers are now preparing for a potential rally, initiating a bearish pattern for XRP price amid declining open interest.
Traders Show Less Interest In XRP Futures
With the XRP price showing increasing volatility around $0.55, traders display hesitancy in initiating futures positions, bringing a bearish sentiment in the market. Data from Coinglass unveils that in the last 48 hours, XRP’s Open Interest (OI) has declined from a peak of $553 million to $506 million, signaling a $47 million contraction in futures positions.
A decline in open interest can reflect a potent bullish or bearish sentiment among traders, depending upon the price movement’s vector. Consequently, when both price and OI experience a downturn, it often brings a bullish market, as traders exhibit low interest in futures amidst a falling price, thereby holding the potential for establishing a robust support level.
Interestingly, the long/short ratio presently leans towards the confidence of those holding short positions. Having declined in recent hours, the ratio now trades at 0.9309. At this point, bears hold the outlook with 52% of short positions, while bulls offer resistance with 48% in long positions, indicating that the current sentiment is heading toward a downward trajectory.
Additionally, with the XRP price continuously declining below Fib channels, there’s a surge in long-liquidation. The liquidation chart reveals that long positions worth nearly $700K were liquidated in the past 24 hours, keeping bulls away from the current trend and strengthening the resistance level.
What’s Next For XRP Price?
Buyers are holding the XRP price above the pattern’s support line at $0.51, indicating minor buying near the price dip. However, bears are attempting to slow down the buying sentiment by plunging the altcoin below the support line. As of writing, XRP price trades at $0.521, declining over 0.85% from yesterday’s rate.
The RSI trend line is making a positive divergence with the midline, currently trading at 49. Also, XRP’s momentum within the EMA lines suggests that buyers may soon make a comeback if the price rebounds from $0.51.
The bulls are set to challenge the overhead resistance at $0.55. Success in this move could signal the initiation of a new uptrend, potentially setting the XRP price on a path toward the resistance of $0.64.
On the flip side, if the price fails to gain buying pressure near $0.51 and drops below the uptrend line, it may imply that bulls are capitalizing on profits. This scenario could confine the altcoin to hover between $0.46 and $0.48 for several additional days.
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