Ripple (XRP) Price Trend Opens Opportunity for SHORT Traders

Key Insights:

• Ripple’s (XRP) price dipped to $0.48 on Wednesday, October 11, pushing its weekly losses above the 10% threshold.
• This week, XRP Ledger Network has reached its lowest point for 2023, according to on-chain data compiled by Santiment. 
• Technical indicators show that losing the $0.45 support level could open opportunities for Short traders in the XRP futures market. 

Ripple (XRP) price dipped below the $0.48 support level on Wednesday as weekly losses surged past 10%. Furthermore, Binance exchange announced the delisting of its XRP/BUSD to be replaced by the XRP/FDUSD trading pair on October 17.  Here’s how the XRP markets could react in the coming days. 

XRP Transactions Decline to 2023 Low

On Tuesday, Binance announced the decision to delist XRP/BUSD liquidity pools and 11 other tokens to be replaced by FDUSD trading pairs, 

But before this official announcement, XRP holders had begun to take a cautious approach. On-chain data shows that the XRP ledger network processed just 71,820 transactions on October 7, and has surpassed the 90,000 threshold since then, 

The Santiment chart below, further emphasizes the growing caution among XRP holders, showing that December 2022 was the last time XRP’s daily transactional activity dropped below 72,000.

XRP Transaction Count sums up the daily number of transactions conducted on the XRP Ledger within a trading period. A decline in transaction count suggest a drop in network demand which is vital bearish indicator. 

Unsurprisingly, the XRP price has now retraced from $0.54 to $0.48 between October 2 and October 11. Since the binance delisting will require all existing traders to exit their XRP positions, it could trigger more bearish price action in the coming days. 

Short Traders are Dominating the XRP Futures Markets

In further confirmation of this thesis, the derivatives market data from Coinglass shows that more XRP Long positions have been liquidated that Short in each of the last 5 trading days, dating back to October 7. 

As depicted in the chart above $5.6 million worth of XRP long positions have been liquidated between October 7 and October 11. During that period on $162,000 worth of Short positions have been liquidated. 

This shows clearly that the Binance delisting announcement has opened a window of opportunity for Short/Inverse traders. 

XRP Price Prediction: The $0.45 Support is Critical

XRP is currently trading at $0.48, and the 14-day Relative Strength Index (RSI) is at 30.59. This RSI reading suggests a market condition where XRP may be considered oversold.. 

With the RSI at 30.59, it indicates that XRP is currently in oversold territory, implying that there could be a potential price support around $0.45. A break down towards this level could trigger  buyers to enter the market to prevent further losses.

On the uptrend, the resistance level to monitor is around $0.52. If XRP’s RSI approaches the 70 mark, it may suggest a shift towards overbought conditions. 

Breaking above this level might signal a strengthening bullish momentum and a potential path for further price gains.