XRP has faced a challenging decline over the last 48 hours, falling below the $2.00 support level.
This drop came at an inopportune time, especially considering the excitement surrounding Teucrium’s launch of the leveraged US XRP ETF. The news had initially sparked optimism, but the recent decline has overshadowed it.
XRP Traders Change Their Stance
In the past 24 hours, the funding rate for XRP switched from positive to negative, indicating a shift in market sentiment. Traders have begun shorting the altcoin, likely in response to the recent price decline. This shift suggests that many traders are preparing for further drops in price, hoping to capitalize on any potential bearish momentum.
The negative funding rate further highlights the growing skepticism among traders about XRP’s short-term price performance. While the ETF launch initially created a buzz, the recent price action has shifted traders’ focus to the downside.
XRP Funding Rate. Source: Coinglass
The overall macro momentum for XRP is currently weak, as indicated by technical indicators like the ADX. With the ADX reading of 22, just below the threshold of 25, it signals that the current downtrend may be gaining strength. If the ADX crosses the 25 threshold, it would confirm the strengthening downtrend, potentially leading to further declines in XRP’s price.
Given the current technical setup, XRP may struggle to reverse the trend unless key levels of support are reclaimed. The downtrend could persist as traders and investors react to broader market conditions, particularly as XRP faces negative sentiment and increasing selling pressure.
XRP ADX. Source: TradingView
XRP Price Decline Continues
XRP’s price has dropped nearly 12% in the last 48 hours, trading at $1.88 at the time of writing. The bearish trend has already overshadowed any optimism surrounding the launch of the US XRP ETF by Teucrium. If this sentiment continues, XRP could face further downside pressure.
As the altcoin remains trapped under a declining trend line since early March, a further decline to $1.70 seems likely. This would extend the losses experienced over the past few days and put additional strain on the price of XRP.
XRP Price Analysis. Source: TradingView
However, if XRP manages to reclaim $2.02 as support, it could signal a reversal of the bearish trend. A successful bounce from this level could push XRP beyond $2.14, invalidating the current bearish outlook and allowing the altcoin to break free from its downtrend.
