XRP Faces Mounting Pressure as Traders Shift Heavily Toward Shorts

XRP has come under intensified selling pressure, sliding nearly 10% over the past week and signaling deeper concerns among derivatives traders.

The decline has sparked a flurry of activity in the futures market, with many positioning for further downside.

The altcoin now teeters near a critical support level around $2, and weakening buying momentum could push it below that threshold in the short term. Key market indicators are reinforcing this bearish outlook.

Data from CryptoQuant shows the taker buy/sell ratio for XRP futures has remained below 1 for two consecutive weeks, currently sitting at 0.92. This metric tracks the volume of market buy orders relative to sell orders in futures trading. A consistent reading below 1 indicates a clear dominance of sellers, with more traders executing market sells than buys.

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The pessimistic trend is also evident in the long/short ratio, which has hovered beneath 1 since early May. According to Coinglass, the ratio currently stands at 0.94—another signal that market participants are leaning heavily into short positions, betting on a continued price decline.

This shift isn’t being driven by temporary volatility alone. The extended preference for shorts suggests a broader market expectation that XRP is heading lower, with traders recalibrating their strategies around that sentiment.

Unless momentum flips and buyer demand returns, XRP may face additional downside in the near term, especially if its key technical levels fail to hold.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.