⚈Despite bullish bets, XRP broke support and shows signs of further decline
⚈ RSI at 47.85 suggests token may stabilize but a rally is unlikely soon
XRP short sellers began jumping ship in early May, with the long/short ratio for the token showing that long positions have become the most prevalent they have been in over a month, once a very brief spike on the last day of April is excluded.
At press time on May 6, the ratio for XRP stands at 2.467, its highest reading since the 2.482 was briefly recorded on April 30 and significantly above the 30-day range between 1.718 and 2.368.
The last time the balance between bullish and bearish bets was close to its press time value with any stability was between March 27 and April 4, when it ranged from 2.272 to 2.520.
Furthermore, 70.95% of all accounts maintained a long position on May 6, and only 29.05% were short, per the data Finbold retrieved from Coinalyze on the day.
Elsewhere, the bear exit may have been premature. In recent trading, XRP has abandoned its brief upswing, which took it to $2.29 in the final days of April, and has developed a relatively decisive downtrend since.
Will XRP continue plunging?
Considering that the token is changing hands below its previous nearest support level of $2.10, there is reason to believe it could soon plunge further, possibly to its next foothold at about $2.09.
Should the native asset to the XRP ledger fall to the low and break below it, its next opportunity to regain stability could be as distant as $2.05. On the flip side, and possibly signaling a bullish correction, XRP already tested the $2.09 level early on May 6 and bounced higher. However, a larger rally remains distant as the nearest resistance is at a lofty $2.18.
The wisdom of the drop in the prevalence of bearish bets can be seen in the fact that the token’s relative strength index (RSI) stands at 47.85. This demonstrates that the cryptocurrency is neither particularly overbought nor oversold and hinting that it could soon end the downturn and find some stability at its current, admittedly depressed, price.
