XRP Sees a 4% Gain Today
The price of XRP has experienced a 4% increase today, driven by the adoption of Ledger XRP and the Web3 Salon in Japan. However, despite these recent gains, the token faces a high risk of dropping below $2, potentially reaching $1.70 due to a bearish technical backdrop.
Currently, XRP is trading at $2.23, with a daily low of $2.20 and a high of $2.29. Transaction volumes have increased by 95% to $2.78 billion. However, XRP’s price faces persistent technical hurdles, with repeated rejections at the 50-day Simple Moving Average (SMA) level. Additionally, the formation of a bearish descending triangle could lead to a drop towards $1.79.
Expert Forecasts a Drop to $1.70
According to analyst Ryan Lee of BitGet, the price of XRP is at risk of dropping to $1.70 in the short term, even with some bullish stability around $2. Additionally, the recent formation of a “death cross” has also urged traders to exercise caution, reinforcing the bearish scenario.
Coinglass data indicates that many traders are opening long positions on XRP, which could have a long-term bearish effect. On Binance, the long/short ratio is 2.45, with 72% of derivative traders betting on gains. This excessive long position could increase the risk of a bullish “squeeze” in case of an unexpected price drop.
Despite the recent price recovery of the Ripple token, technical signals remain mixed. While XRP has benefitted from Ledger adoption by the Japanese Web3 Salon, constant rejections at the 50-day Simple Moving Average, coupled with the formation of a descending triangle, hint at a possible drop below $2, potentially down to $1.70. Traders need to remain vigilant amid this potential bearish outlook.
