XRP slide as bearish derivatives data limits recovery

What happened

XRP's price has fallen by more than 2% over the past few days. On-chain data shows that sellers are dominating the market, and the long-to-short ratio, along with a negative funding rate, reflects bearish positioning.

Confirmed

Global impact / market context

This decline suggests that investors are expecting further price drops for XRP. The negative funding rate, which is a fee paid to keep futures contracts aligned with the spot price, indicates that more traders are betting against the cryptocurrency, potentially leading to more selling pressure.

Analyst inference

The bearish derivatives data, such as the low long-to-short ratio, points to a cautious mood among traders. This could mean that XRP's recovery is limited in the short term, as the market sentiment is currently favoring sellers over buyers.

Analyst inference

What to watch

1. Monitor XRP's price movement over the next few days to see if the more than 2% decline continues or if it stabilizes, as the article reports this recent drop. Confirmed
2. Watch the long-to-short ratio to see if it moves closer to a balanced level, which would indicate a more balanced market, or if it drops further, signaling even more bearish positioning. Proposed
3. Keep an eye on the negative funding rate, as a shift to positive could suggest that traders are becoming more optimistic, potentially leading to a price recovery for XRP. Analyst inference

Affected assets

• XRP — XRP

Evidence

• coinjournal.net