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    Home»AI»XRP Traders Face Risks as Short Selling Persists for Three Months
    XRP Traders Face Risks as Short Selling Persists for Three Months – featured image
    With XRP's price fluctuations raising eyebrows, traders are closely monitoring critical support levels amid ongoing short-selling pressure that could lead to unexpected market shifts.
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    XRP Traders Face Risks as Short Selling Persists for Three Months

    CryptoCoinBizzBy CryptoCoinBizzMay 11, 2026No Comments3 Mins Read
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    XRP has recently experienced a pullback after reaching a high of $1.5074, currently trading around $1.44. As traders navigate through this volatile landscape, a cluster of support levels is emerging, which may determine whether the price can initiate another upward movement.

    The token notably outperformed Bitcoin and Ethereum during its ascent, briefly surpassing the $1.45 mark before encountering resistance near $1.5050. Following this peak, XRP’s price dipped below $1.48 and $1.4620, crossing under the 38.2% Fibonacci retracement level of the range between $1.3786 and $1.5074.

    At the time of writing, XRP is positioned between $1.42 and $1.44, maintaining a position above the 100-hourly Simple Moving Average. A bullish trend line is forming on the hourly chart, with immediate support established at $1.4420.

    For XRP to regain bullish momentum, it must breach the $1.4620 resistance level. A successful breakout would likely pave the way toward targets of $1.4770, $1.5050, and even $1.520 and $1.550. Conversely, if XRP fails to uphold the $1.4420 support, it could drift toward $1.4280, which aligns with the 61.8% Fibonacci retracement level, and potentially down to $1.4120 and $1.40.

    Analysts Highlight Bearish Funding Rates as Possible Reversal Indicator

    Analyst Darkfost has drawn attention to XRP’s funding rates on Binance, which have exhibited a bearish bias for nearly three months—marking the longest stretch of such positioning recently, despite XRP experiencing a 27% increase during this same timeframe.

    Darkfost noted that this bearish sentiment comes amidst a broader correction influenced by an uncertain global economic environment, which has led to significant downturns in the altcoin sector. The Total3 index, which excludes Bitcoin, Ethereum, and stablecoins, has witnessed a staggering loss exceeding $544 billion.

    He observed a pattern from April 2025, when XRP was trading at $1.25 amid similar bearish conditions, before embarking on a remarkable rally of 126%.

    In addition, Darkfost commented, “When such a strong consensus forms, especially following a correction exceeding 60%, it often signals a potential reversal in the making.”

    Another analyst, CW, has suggested that a golden cross of sub-indicators is materializing, predicting that a full-scale rise for XRP is imminent.

    “Preparation for launch has been completed at the bottom line. A golden cross of the sub-indicators is imminent,” CW tweeted.

    Macro Bottom Analysis Suggests Potential Low at $0.93

    In a separate analysis, Egrag Crypto has highlighted XRP’s weekly chart, noting that historical cycle lows have shown a decreasing deviation below the 200-week Simple Moving Average (SMA) with each cycle. The first cycle low fell approximately 60% below the 200-week SMA, while the second cycle low was around 40% below.

    If this pattern continues, the next potential bottom could be around 20% below the 200-week SMA, suggesting a price point near $0.93. Egrag referred to this as a “logical structure,” though not a confirmed bottom.

    XRP continues to uphold its long-term ascending trendline on the weekly chart, indicating resilience amid shifting market conditions.

    Recent derivatives data from CoinGlass reveals that while futures volume has decreased by 34% to $2.05 billion, open interest has risen by 1.05% to $2.72 billion. The OI-weighted funding rate is currently at 0.0052%, signaling a mildly positive outlook.

    Over the last 24 hours, XRP’s trading volume has dipped to $1.2 billion, reflecting a 30.48% decline.

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