XRP Price Under Bearish Pressure After Shedding 8% of Its Value

The price of Ripple (XRP) is coming under bearish pressure after shedding more than 8% of its value in the past week, recording the biggest seven-day loss among the top-ten largest cryptos by market cap.

As the downward pressure intensifies, Ripple will likely lose its competitive edge over the largest altcoin, Ethereum, after the XRP/ETH ratio plunged to its lowest level in a month.

This bearish move comes as long liquidations have surged, especially in the past 24 hours, with over $8M positions by long buyers being forcefully closed as the XRP price declined. This liquidation activity is likely to continue if the cryptocurrency drops further.

At the same time, data from Coinglass shows that Ripple’s open interest has declined from $4.15 billion to $3.63 billion in just one week, shedding more than $520 million.

This drastic decline may prevent an explosive Ripple rally as it indicates that futures traders are no longer willing to open new positions, amid the closure of existing ones due to price volatility.

Despite this, the level of leverage remains notably high, with over 75% of Binance traders opening long positions, causing the long/short ratio to reach its highest level in a month.

While the opening of new long positions shows that many traders anticipate the XRP price to recover, an unprecedented downtrend will trigger liquidations that will push the Ripple price lower as those with open positions sell.

XRP price has been performing poorly against other top altcoins, especially Ethereum. The XRP/ETH ratio has plunged to its lowest level in one month, and this suggests that while Ripple is shedding gains, Ethereum has successfully defended its support level and will likely continue dominating the altcoin market.

This ratio now stands at 0.00118, and if the price of XRP continues with the downward trend, and loses the next support at 0.00111, it will trigger the next bearish leg to 0.00102. Meanwhile, the RSI is showing that the bearish momentum is intensifying, indicating that Ripple is facing further correction against ETH.

If the bears break the crucial psychological support at $2, they might meet strong buy orders from traders accumulating the dip, which will likely support an upswing.

According to the analysis shared by trader CrediBULL Crypto, XRP price will likely drop below $2 first before it can make an upward recovery.

This bearish move will come if sellers manage to break the support levels at $1.87 and $1.79. A decisive break below $1.79 will likely trigger a cascade towards the next support at $1.50.

However, if buyers manage to defend the support levels at $1.87 and $1.79, it might pave the way for a recovery towards the next resistance levels at $2.10 and $2.46.

After flipping the critical $2.10 resistance level, the bulls will aim for a breakout to $4.