Altcoin
Short Sellers Target XRP: What Will Happen to the Struggling Altcoin?
- Short positions taken against XRP have grown significantly in recent days.
- Network growth and transaction counts have also decreased significantly.
Despite the bull run seen by the cryptocurrency sector, XRP failed to garner similar levels of attention from traders and investors.
Due to these factors, sentiment around XRP has turned bearish.
XRP bears are hungry
According to recent data provided by Santiment, there were a large number of short positions taken against XRP at the time of writing.
Although a large number of short positions indicated that most traders were expecting the price to decline, there was some silver lining for the bulls.
The liquidation of these short positions, often triggered by unexpected price increases, can actually help build momentum, pushing XRP even higher.
So, for patient investors with a long-term perspective, this short frenzy could be a signal to prepare for a potential rally.
Source: Santimento
At the time of writing, XRP was trading at $0.4996. In the last 24 hours its price has grown by 1.29%. Despite the recent price increase, XRP has not been able to make any significant changes to its already established trend.
Since May 21, its price has been dropping and showing multiple lower lows and lower highs. Subsequently, the altcoin consolidated between the $0.529 and $0.4660 level and moved sideways during this period.
The RSI (Relative Strength Index) rose significantly, indicating that the bullish momentum around the token had grown.
Furthermore, the CMF (Chaikin Money Flow) also increased, implying that there was a significant amount of money flowing into XRP.
If the bullish momentum persists, XRP could reach towards the $0.5291 levels and may even test the $0.5615 level in the future.
Source: Commercial View
A bearish outlook on the chain
However, the on-chain metrics do not paint a positive picture. Analysis of Santiment data by AMBCrypto revealed that the network’s growth has declined substantially in recent days.
Realistic or not, that’s it The market capitalization of XRP in terms of BTC
This decline suggests that the number of new addresses interacting with XRP has decreased substantially.
The transaction count has also decreased, which could be bearish for the token in the long term.
Source: Santimento