The post Will XRP shorting activity serve as ‘rocket fuel’ for an explosive rally? appeared on BitcoinEthereumNews.com.

In the midst of recent cryptocurrency market turbulence and sell-offs, XRP Ledger (XRP), backed by Ripple Labs, is pushing to regain bullish momentum.  On-chain analytics platform Santiment has highlighted a factor that could contribute to further price increases for XRP. Despite recent declines in the crypto market, heavy shorting activity against XRP might paradoxically serve as “rocket fuel” for a price rise. Santiment revealed that XRP, along with Cardano (ADA), is among the most heavily shorted altcoins following their relief bounces. This heavy shorting is seen as a positive sign for patient bulls. The liquidation of these short positions could provide the necessary momentum for XRP to rise higher. 📈 Cardano and XRP are a couple of the most notable altcoins that are seeing heavy trader shorting following relief bounces. This is a good sign for patient bulls, as liquidates shorts can effectively act as ‘rocket fuel’ for continued price rises. pic.twitter.com/lHdMCLbngR — Santiment (@santimentfeed) June 19, 2024 Current market indicators Firstly, the data shows that the Binance Funding Rate for XRP stands at -0.002935, indicating a bearish market sentiment with a prevalence of short positions. Traders holding short positions are paying those with long positions, suggesting expectations of a price decline.  Additionally, the long/short ratio of 0.9623 indicates near-parity but with a slight tilt towards more short positions, further reinforcing the bearish outlook. Moreover, the one-week liquidation heat map reveals significant leverage concentration around the $0.50664 price level, with up to 3.41K in liquidation leverage. XRP Liquidation Heatmap. Source: CoinGlass Notably, strong support zones are identified between $0.48 and $0.50, while resistance is noted near $0.52. These levels are crucial, as movements beyond these points could trigger significant liquidations. Recent data from CryptoQuant highlights a significant increase in Open Interest (OI) for XRP. Rising open interest typically indicates that…

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Filed under: News - @ June 21, 2024 8:12 pm