Ripple's XRP is facing difficulties in holding above the $2 mark following a significant drop over the weekend. March has been a challenging month for the cryptocurrency.
Why is XRP Price Dropping?
The crypto market is under pressure due to economic concerns from the latest U.S. jobs report. Investors are spooked by rising bond yields and inflation worries, driving them to shift their funds into safer investments than crypto. The largest cryptocurrency, Bitcoin, has also dropped 20% and is now under pressure from market uncertainties.
Bears Are in Control: $270M in Short Bets at $2.70
Market data shows that XRP’s derivative traders are overwhelmingly bearish. Over the past month, $375 million has been placed in short positions, while only $125 million has been placed in long positions. This means about 77% of leveraged traders are betting against XRP.
XRP Price Forecast: More Downside or a Rebound?
Currently, XRP is striving to maintain the $2.18 level after a 20% drop. If the bulls cannot step in, another decline might be imminent. Key levels to watch include the $2.60 resistance and $1.95 support. The RSI indicator is nearing oversold levels, which could invite more selling.
XRP's price stands at a critical juncture, and the market remains tense. Traders should exercise caution in the current conditions.
