XRP is falling into a danger zone, with the possibility of losing the 2 USD mark.

As of the time of writing, XRP has witnessed a decline of nearly 8% over the past week, negatively affecting the sentiment of traders and triggering a wave of selling in the futures market for this altcoin. As buying pressure weakens, XRP is facing the risk of plummeting below the important support level of 2 USD in the near future.

XRP traders in the futures market are betting on a downward trend

The XRP market is showing clear signs of decline, as evidenced by the (taker buy/sell ratio) of this token, which has consistently recorded negative values over the past two weeks. This indicates that sell orders are dominating buy orders in the XRP futures market. At the time of writing, this ratio is fluctuating around a support level of 0.92.

The buy/sell ratio of XRP | Source: CryptoQuantThe buy/sell ratio of an asset measures the ratio between the volume of buy and sell orders in the futures market of that asset. A value above 1 indicates that buy orders dominate over sell orders, while a value below 1 suggests that many traders are selling off this asset.

The continuous decline in the buy/sell ratio of XRP over the past few weeks indicates a strong wave of sell-off among futures traders, many of whom are increasing their Short positions. This is clearly reflected in the Long/Short ratio of the token, which is currently at 0.94.

To understand better, this index has consistently remained below the 1 mark since May 8, indicating that traders have been preparing for a prolonged fall lasting nearly a month.

The Long/Short ratio of XRP | Source: CoinglassThe demand for long positions in Short indicates that the bearish trend of XRP is not only a reaction to short-term volatility, but also a sign that negative sentiment is growing, due to expectations that prices will continue to fall.

Will XRP hold the support level of 2 USD?

At the time of writing, XRP is trading at a level of 2.13 USD. If the bearish pressure continues to increase, this altcoin may plummet below the psychological mark of 2 USD. Breaking this critical support level could prolong the current correction process and the price of XRP may fall below the level of 1.99 USD.

! XRP Price Analysis | Source: TradingViewHowever, if new demand for this altcoin picks up again, this bearish forecast may be deactivated. If the buying power increases, the XRP token could witness a price rally and reach $2.29.

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