XRP is starting the week under pressure, falling 2.21% to $2.14 on Monday and extending its seven-day decline to 7.5%. Despite holding nearly flat on the month, the altcoin has struggled to regain traction above $2.20 as bearish sentiment takes hold across the market.
Much of that caution stems from a notable increase in short interest. According to Coinglass data, XRP's long/short ratio has remained below 1 for nearly two weeks, most recently clocking in at 0.93.
Short Sellers Dominate Market Mood
That indicates more traders are betting on downside than upside—a signal of mounting skepticism. Adding to that, sentiment across social channels has stayed negative. XRP's weighted sentiment reading is currently at -0.40, highlighting a lack of bullish conviction and ongoing sell-side pressure.
The pessimism runs opposite to the optimism seen earlier this year, when hopes for a spot XRP ETF helped send the token above $2.30. While the U.S. Securities and Exchange Commission delayed a decision on the Franklin Templeton XRP ETF last week, prediction markets still see it as a likely approval.
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As of Monday, Polymarket bettors gave the fund a 76% chance of being approved by the end of 2025.
Still, some analysts see near-term headwinds. “XRP and Bitcoin bounced back from the tariff shocks in April, but have yet to make a significant movement upwards,” Nick Ruck, director at LVRG Research, said to CoinDesk. "Investors may be overly cautious about risk assets such as crypto due to the current US macroeconomic climate."
The broader crypto market opened the week on the defensive. Bitcoin remains trapped between $93,000 and $95,000 as traders await developments in U.S.–China trade negotiations. Thin trading volumes due to public holidays across Asia further dampened momentum.
XRP, meanwhile, is flirting with a critical psychological level at $2. If current market conditions persist, the token risks slipping below this threshold, with technical indicators pointing to potential support at $1.99 and $1.61.
Still, a reversal is not off the table. A sustained shift in demand could help XRP climb back above the $2.29 resistance level, potentially setting up a test of the $2.50 mark.
While short interest remains elevated and social sentiment is muted, XRP's next move will likely hinge on broader market catalysts, including risk appetite around U.S. macroeconomic policy and geopolitical negotiations.
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