XRP Shorts Go Aggressive: Is a Major Price Drop Coming?
Bears are circling XRP, and they're not being subtle about it.
Short positions on the Ripple-linked token have surged, signaling a wave of skepticism from traders betting against its price. The market chatter has shifted from 'when moon?' to 'how low can it go?'—a classic pivot that happens when optimism gets expensive.
The Setup for a Squeeze
It's a high-stakes game of chicken. Aggressive shorting creates a coiled-spring scenario. If positive news or a sudden buy wave hits, those bearish bets could unravel in a violent short squeeze, sending prices rocketing upward. But if the bears are right, and the selling pressure mounts, the floor could drop out.
Remember, in crypto, the 'smart money' narrative often just means someone placed a bigger bet.
For XRP holders, it's a tense watch. The token's fate often feels tied to courtroom dramas rather than pure market fundamentals—a unique headache in an already volatile asset class. This surge in short interest isn't just a trade; it's a sentiment gauge flashing a warning sign that the path of least resistance might be down.
Will the bulls defend their ground, or are the shorts about to cash in? Strap in.
XRP: Short Positions Increasing, Threatening a Price Dip
According to the latest data from Coin Bureau, XRP’s shorts are $15 million, while longs are only $600,000. That’s a heaven and earth difference where sellers have outpaced the long-term holders. This adds pressure on its price as the amount of shorts can bring its value down after getting liquidated.
Here’s the shorts Vs longs for other leading cryptocurrencies. XRP is the clear loser here:
Short traders are bigger in numbers for XRP, and its price is now hovering around the $2.08 range. If all the shorts get liquidated, and since they are a bigger crowd than the longs, its price could dip below the $1.8 next. That’s a sharp correction of approximately 15% from its current range.
Therefore, it is advised to avoid taking an entry position into XRP now and wait and watch for the next prospects. The best strategy is to keep an eye on its price and begin to accumulate the dips. Buying at its lowest point could benefit traders after the situation normalizes. It WOULD also deliver handsome returns when the price shoots up in value.
