Here’s Why Traders are Flipping Short on XRP Despite its Intense 10% Rally



XRP kicked off an intense and unexpected uptrend yesterday, which led the embattled cryptocurrency to rally over 10%, marking a significant outperformance of Bitcoin and the aggregated market.

This momentum has not been fleeting thus far – as the crypto is now in the process of posting even further gains as bulls attempt to push it back towards the $0.20 region.

In spite of this strong momentum, one respected trader is now noting that he is flipping short on the cryptocurrency, a signal that he does not believe this movement is strong enough to send XRP past its key near-term resistance.

XRP Outperforms Cryptocurrency Market is Striking Overnight Movement 

At the time of writing, XRP is trading up nearly 10% at its current price of $0.176, which marks a notable climb from daily lows of under $0.15.

Prior to yesterday’s sharp upwards movement, the token had been caught within a bout of sideways trading that led it to range around $0.15 for multiple days.

This consolidation came about in tandem with that seen by Bitcoin, which has been trading between $6,600 and $6,800 for the past few days as bulls attempt to surmount the resistance that exists around $7,000.

The rally has also allowed XRP to significantly outperform both Bitcoin and virtually all other major altcoins, leading one trader to note that it may now be forming a classic bull flag that could lead it significantly higher in the near-term.


Image Courtesy of The Cryptomist

As for how high a breakout of this flag could lead the crypto, the trader notes that its next key resistance sits around 2800 sats – a slight ways up from its current price of 2600 sats.

This Analyst is Shorting the Crypto Due to Mounting Resistance

Calmly, a well-respected cryptocurrency trader on Twitter, explained in a recent tweet that he believes XRP is currently positioned to see some notable near-term downside in the hours and days ahead, primarily due to the resistance it is currently pushing up against.

“XRP – I’m bored and haven’t traded in a while. So I’m shorting XRP, even though I was bullish on this,” he explained.

While looking at the chart he references above, it appears that he is targeting a near-term downside movement towards $0.14, which could prove to be where it finds enough support to bolster its price action.

Because XRP is rallying independently of the aggregated crypto market, it is also a strong possibility that its next downwards movement could come about separate from any movements seen by BTC.

Featured image from Shutterstock.


Source link Litecoin News


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