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Ripple (XRP) Shorts Decline Almost 20% But Price Lags Behind Bitcoin (BTC)

Ripple (XRP) Shorts Decline Almost 20% But Price Lags Behind Bitcoin (BTC)
Breaking News / Bitcoin / Cryptocoins / Analytics / Ripple

Ripple (XRP) has seen a major decline in the number of margined shorts but the price is still lagging behind Bitcoin (BTC). The daily chart for XRPUSDShorts shows that the number of margined shorts has declined almost 20% for the day to test the previous support. XRPUSDShorts has tested and held the previous support so far but the Stochastic RSI is still overbought and points to the likelihood of further decline in the near future. This decline in XRPUSDShorts is very significant as it ended up falling below the 21 day exponential moving average. Ripple (XRP) bulls do not seem moved by a sudden decline in sell pressure as the price continues to lag behind the rest of the market. While most altcoins have already made double digit gains, Ripple (XRP) continues to lag behind Bitcoin (BTC).

Weiss has rated Ripple (XRP) at Grade A, same as Bitcoin (BTC). This does show that the cryptocurrency has a lot of potential long term but the price does not reflect any of that so far. Ripple (XRP) has been long overdue for lift off since the past few weeks but it keeps stalling a move to the upside. The price broke out of an eight months long symmetrical triangle but it failed to make a decisive break to either side. Instead, it traded sideways as it moved out of that triangle and has been consolidating ever since with no definitive direction. Even as XRPUSDShorts has declined almost 20%, the price still seems unable to make a move to either side. The current rise that we see in Ripple (XRP) is insignificant and cannot be characterized as a return of bullish interest in Ripple (XRP).

Ripple (XRP) is currently up almost 2% for the day as the price struggles to break past the support turned resistance at the 50 day moving average. The Stochastic RSI points to ample room for a rally towards the 200 day moving average but at the moment there is not enough bullish momentum to support a move like that. If XRP/USD does end up breaking above the 50 day moving average, it is likely to face a strong rejection at the 200 day moving average as it has in the past few months. This is because the price of Ripple (XRP) is still near overbought levels on the weekly time frame.

It is important to note that Ripple (XRP) is less overbought compared to most cryptocurrencies but so far the price does not seem to be in a position to capitalize on that. Ripple (XRP) is massively oversold against Bitcoin (BTC) on both the weekly and daily time frames which means that although Ripple (XRP) might be reluctant to rally in good times, it is also likely to be better positioned to defend against further declines when the market prepares for its next major correction to the downside. Ripple (XRP) has a lot of positive developments lined up and soon as the market begins to recover, we might see the cryptocurrency leap ahead of the rest of the market once again.    


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