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XRP Rally Stifled: Bearish Traders Prevent 48% Surge to All-Time High

XRP Rally Stifled: Bearish Traders Prevent 48% Surge to All-Time High

BeInCryptoBeInCrypto2024/12/26 05:00
By:Aaryamann Shrivastava

XRP remains trapped in consolidation, trading at $2.24 with bearish sentiment rising. Breaking $2.73 is critical for a potential rally.

XRP has been trapped in sideways momentum, struggling to join the league of cryptocurrencies like Bitcoin that have reached new all-time highs (ATHs).

The lack of significant movement has kept the altcoin from rallying, frustrating investors hoping for a breakout. XRP’s recent performance highlights growing bearish sentiment among traders.  

XRP Traders Are Unsure

Traders are increasingly leaning toward shorting XRP rather than betting on a rally. The Long/Short ratio currently shows short contracts dominating long contracts, reflecting a monthly low. This imbalance highlights a bearish market sentiment, with investors expecting a decline rather than a surge in XRP’s price.  

The dominance of short contracts suggests that most traders are preparing for XRP to lose value rather than recover. This bearish outlook reflects broader market uncertainty and could keep the altcoin’s price under pressure in the near term, especially without significant bullish catalysts.  

XRP Rally Stifled: Bearish Traders Prevent 48% Surge to All-Time High image 0XRP Long/Short Ratio. Source: Coinglass

XRP’s macro momentum also shows bearish tendencies, with the Relative Strength Index (RSI) sliding downward. This decline indicates that bearish momentum is gaining strength, adding to the challenges for XRP. However, the RSI remains above the neutral line, suggesting that selling pressure is not yet overwhelming.  

The RSI’s position leaves room for potential recovery, but the downward trajectory is a warning sign for cautious investors. Without increased buying activity, XRP could face further consolidation or even a downward breakout, emphasizing the need for traders to monitor momentum closely.  

XRP Rally Stifled: Bearish Traders Prevent 48% Surge to All-Time High image 1XRP RSI. Source:  TradingView

XRP Price Prediction: Staying In The Lane

XRP is currently consolidating between $2.73 and $2.00, a range it has been stuck in for the past three weeks. This prolonged consolidation has kept the altcoin from breaking out, delaying its chances of forming a new ATH and leaving it vulnerable to market shifts.  

The current ATH of $3.31 remains 48% away from XRP’s trading price of $2.24. For XRP to target this level, it must first break out of its current range and flip $2.73 into support. This move would signal renewed bullish momentum and set the stage for a potential rally.  

XRP Rally Stifled: Bearish Traders Prevent 48% Surge to All-Time High image 2XRP Price Analysis. Source:  TradingView

If XRP fails to hold above the critical support of $2.00, the bullish thesis will be invalidated. A breakdown below this level could lead to a sharp decline, putting the altcoin at risk of further losses.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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