XRP Takes A Dive Despite Recent Price Dump

XRP Takes A Dive Despite Recent Price Dump

Ripple’s XRP has been one of those cryptocurrencies that have been seriously impacted by the bear market that followed the huge bull run in late-2017 as it is currently trading just a slight bit above its 2018 lows of roughly $0.25.

Despite the poor performance of XRP over these past few months, the number of short positions against the token has been sinking as of late, which signals that traders are expecting the cryptocurrency to find some support around its current price range.

Breaking $0.27

Currently priced at $0.26 at the time of writing, the question needs to be asked on whether the token will soon be able to break the $0.27 mark…

Earlier in August, Ripple's token fell below its previous support level of $0.30 which is a sign of a big drawback that more than likely led to some technical damage to the cryptocurrency. 

As reported by Ethereum World News:

“After this plunge, investors lost a significant amount of confidence in the crypto and the amount of outstanding short positions on Bitfinex skyrocketed from roughly 7.3 million shorts to highs of nearly 23 million shorts.”

In the time since then though, the amount of outstanding XRP short positions have taken a big hit to around 13.8 million. This is a signal that traders are starting to believe that the cryptocurrency has found a bottom that will hold as a strong level of support.

Traders may be growing increasingly confident in XRP’s near-term price action, it is important to note that $0.27 has grown to be a strong level of resistance that the taken has failed to decisively break above on several occasions.

The popular trader and analyst, Peter Brandt explained:

“Will Ripple be able to manipulate the market to keep $XRP above .2400? A serious breakdown at this level, and .020725 is in the cards.”

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