Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Sellers extended their dominance to wipe out more XRP gains in July.
- Short positions in the futures market amounted to $118.09 million, representing a large portion of open contracts.
XRP’s price chart showed little sign of stabilization as the Ripple network’s native token continued its free fall. After the announcement of Ripple’s positive legal ruling in July propelled XRP to an all-time high in 2023, the steep losses wiped out a significant portion of those gains.
Read Ripples [XRP] Price forecast 2023-2024
A weak Bitcoin [BTC] has done little to help XRP as the king coin continued to form its range between $28.9k – $29.3k.
Sellers break through key price levels
Source: XRP/USDT in trade view
Buyers have been unable to find peace with sellers who are effortlessly expanding their dominance. The drawing of the Fib levels on the 12-hour time frame showed that selling momentum was crashing through major price support levels.
On July 26, bulls attempted to ease selling pressure at the 38.2% Fib level ($0.6947). Instead, sellers made a lower high at the 50% Fib level ($0.7252) before continuing the downtrend.
As of writing, the price bounced gently off the $0.5957 price level. A repeat of bearish price action could lead sellers to use the 23.6% Fib level ($0.6568) as another lower high before extending bearish momentum. If successful, the targets for sellers will be $0.5200 – $0.5500.
The strong bearish momentum was reflected by the chart’s indicators. The RSI hovered just above the oversold zone while the MACD maintained its bearish slide below the zero mark after posting a bearish crossover.
A bullish reversal could depend on BTC breaking out of its range formation, which could spur buyers into action with a break above $0.700 turning XRP bullish.
Buyers overwhelmed by sellers in the futures market
Source: Coinglass
How much are 1,10,100 XRPs worth today?
Dates from Mint glass showed the huge advantage sellers currently have. Shorts held a 55.3% share of XRP’s open contract positions, accounting for $118.09 million in short positions.
With longs recording 80.3% of liquidations in the past 24 hours, XRP’s bearish activity could increase significantly over the medium to long term.
Source: Mint glass