Despite the recent recovery seen in the overall cryptocurrency market, the sentiment surrounding Ripple's XRP remains negative. The digital asset is struggling to exceed the $2.20 mark, leading more traders to bet on a further decline in its price.

Traders seem skeptical about XRP's potential for a significant price surge in the short term, with many placing bets against a price increase. Short positions targeting XRP have been on the rise, with the long/short ratio consistently below 1 recently, indicating a preference for short trades. The current ratio stands at 0.93.

The long/short ratio for XRP compares the number of positions betting on a price increase (long positions) versus those betting on a price decrease (short positions). A ratio above 1 suggests more long positions, signaling optimism for a price rise. Conversely, a ratio below 1, like in XRP's case, indicates a bearish sentiment and expectations of a further price decline.

Moreover, XRP's weighted sentiment remains negative, reflecting a bearish outlook driven by increased selling pressure and decreasing investor confidence. This situation raises the likelihood of XRP's price continuing to decrease.

Given the rising short interest and strengthening bearish bias, XRP faces the risk of falling below the $2 threshold. If selling pressure intensifies, the price could dip below $2, potentially reaching $1.99 and approaching the year's low of $1.61.

However, if there is a fresh wave of demand for XRP, it could negate the bearish projection. In such a scenario, XRP's price might exceed $2.29 and move toward $2.50.