Ripple’s XRP struggles to maintain its value above $2 following a significant decline, attributed to broader economic concerns and bearish trader sentiment. With 77% of leveraged traders betting against XRP, critical price levels are crucial as investors remain cautious amid market volatility.

Ripple’s XRP is currently facing significant challenges, struggling to maintain its position above $2 after a substantial decline over the past weekend. In March, XRP witnessed a drastic fall, hitting a low of $2.08, reflecting a 22% drop within just two days. While a rebound to $2.17 has occurred, the ongoing battle for stability in the market remains unresolved.

The decline in XRP’s price can be attributed to broader economic concerns, particularly stemming from the latest U.S. jobs report, which has unsettled investors. The rising bond yields and fears surrounding inflation have prompted investors to shift their capital into safer assets, distancing themselves from cryptocurrencies. Additionally, Bitcoin’s recent drop of 20%, pricing at $80,000, further amplifies the negative sentiment in the crypto market, affecting XRP as well.

Economic indicators such as the 10-year U.S. Treasury yield, which has reached 4.3%—the highest since November 2023—signal a potential exodus of substantial investments from riskier assets, including XRP. Moreover, existing global trade tensions contribute to the mounting uncertainty, which, if persistent through March, could lead to increased volatility for XRP, hindering any possibility of price recovery.

The sentiment among derivative traders is overwhelmingly bearish, with market data from Coinglass indicating 77% of leveraged traders are betting against XRP. Over the last month, traders placed $375 million in short positions compared to only $125 million in long positions. A critical threshold to monitor is the $2.70 mark, where $297 million in short positions exist. Should XRP approach this price, short sellers may amplify their efforts to drive prices down, complicating any recovery attempts.

Presently, XRP struggles at $2.18 after suffering a significant 20% decline. Without robust support from buyers, further downward movement appears imminent. Investors should closely observe several key levels during this period: the $2.60 resistance level, which would indicate bullish momentum if breached; the $1.95 support level, potentially the next stop if decline continues; and the RSI at 35, indicating near oversold conditions which could spur further selling. The ADX at 32 suggests high volatility persists, reinforcing the bearish perspective.

Should XRP fail to reclaim $2.47 swiftly, additional decline may occur. Conversely, if it breaks past the $2.70 resistance, there exists potential for a rally towards $2.99 as short sellers get squeezed out. The market atmosphere remains tense, warranting caution among traders in their strategies moving forward.

In summary, Ripple’s XRP is facing significant downward pressure, influenced by broader economic factors and negative sentiment among traders. With 77% of leveraged positions betting against XRP, the price struggles to regain stability above key thresholds. Investors should keenly observe market dynamics, including critical resistance and support levels, to navigate the current volatility effectively.

Original Source: www.cryptotimes.io

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