XRP has experienced a significant drop in its price in the past week, with the token now trading at $2.09, marking a seven-day low. Analysis suggests that this downward trend may continue in the near future.

Market data indicates a noticeable increase in short positions being taken, indicating traders are becoming more confident in XRP's price falling further. The long/short ratio for XRP futures trading is currently at 0.98, showing a prevalent bearish sentiment among traders.

A high long/short ratio typically signifies a bullish market, while a ratio below 1, as in the case of XRP, implies a bearish market outlook. This shift suggests a growing negative sentiment and expectations for further price decreases.

The recent formation of a "death cross" on the MACD indicator in XRP's daily chart supports the bearish outlook. This suggests a prolonged downward trend, which poses the risk of further price drops for XRP.

Although XRP is currently holding a key support level at $2.09, continued selling pressure may weaken this support, potentially causing the price to decline to $1.61. Conversely, a surge in demand could reverse the downtrend and push XRP's price up to $2.29.