Bearish Sentiment Dominates XRP as Short Positions Surge

• 
  Santiment
  shows
  that
  a
  large
  number
  of
  short
  positions
  have
  been
  entered
  against
  XRP
  and
  ADA,
  with
  analysts
  predicting
  a
  bearish
  market
  for
  both
  veteran
  cryptocurrencies.
• 
  However,
  some
  point
  out
  that
  if
  the
  price
  of
  XRP
  rises,
  all
  the
  shorts
  would
  be
  liquidated,
  propelling
  the
  price
  of
  the
  token
  even
  higher.

XRP
has
shed
8.3%
in
the
past
month,
hitting
a
one-year
low
just
above
$0.46.
This
has
led
to
bearish
sentiments
among
traders,
with
data
showing
that
traders
have
increasingly
taken
short
positions
against
the
token,
but
some
analysts
believe
this
could
fuel
a
comeback
for
the
world’s
seventh-largest
crypto.

At
press
time,
XRP
changed
hands
at
$0.4854,
trading
in
a
tight
range
for
the
past
week,
where
it
set
a
weekly
high
at
$0.5183
on
Monday
before
dipping
hours
later.
The
trading
volume
suffered
the
cyclical
weekend
dip
to
hit
$391
million,
half
the
volume
from
the
day
prior.

Year-to-date,
XRP
has
lost
over
20%
of
its
value,
the
worst
performance
in
the
top
ten
cryptos
by
market
cap.
For
comparison,
Bitcoin
and
Ethereum
have
gained
just
over
50%
in
that
time,
while
BNB
has
almost
doubled
despite
Binance’s
legal
woes
a
few
months
back.
The
only
other
major
coins
that
have
fared
worse
are
Cardano’s
ADA
and
Avalanche’s
AVAX.

This
performance
has
been
mirrored
in
the
derivatives
market,
where
traders
have
piled
on
short
positions
against
both
ADA
and
XRP,
according
to
Santiment.
The
crypto
market
intelligence
platform
stated:

ADVERTISEMENT

Cardano
and
XRP
are
a
couple
of
the
most
notable
altcoins
that
are
seeing
heavy
traders
shorting
following
relief
bounces.
This
is
a
good
sign
for
patient
bulls,
as
liquidates
shorts
can
effectively
act
as
‘rocket
fuel’
for
continued
price
rises.

As
shown
below,
traders
have
placed
big
bets
that
both
tokens
will
continue
to
dip.
However,
if
either
token
shakes
the
bears
off
and
makes
even
moderate
gains,
most
of
the
short
positions
will
be
wrecked,
and
this
could
provide
them
with
the
“rocket
fuel”
they
need
to
embark
on
a
bull
rally.

Despite
the
bearish
sentiments
on
the
derivatives
market,
long-term
holders
remain
confident
in
XRP’s
future.
As
one
analyst
points
out,
the
token
has
formed
a
triangular
trading
pattern
similar
to
the
pattern
that
preceded
the
incredible
bull
rally
of
2017.
Prior
to
2017,
the
triangular
pattern
had
been
narrowing
for
three
years,
and
when
the
token
finally
breached
the
upper
trendline,
it
shot
to
a
new
record
high.

As
shown
below,
XRP
has
been
stuck
in
a
similar
wedge
since,
and
it’s
edging
towards
a
culmination
in
the
near
future.
As
Crypto
News
Flash
has
reported
previously,
the
pattern
aligns
with
the
period
in
which
most
legal
experts
expect
the
SEC
ruling
to
be
made.
A
positive
ruling
for
Ripple
could
provide
the
fuel
needed
to
break
past
the
upper
trendline,
pushing
XRP
to
new
highs.

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