Prominent analyst shorts XRP amid growing euphoria among investors
- XRP price is currently trading above $0.50 for the first time since June 2019.
- A popular crypto analyst has publicly stated that he is looking to short XRP in the short-term.
XRP was one of the few cryptocurrencies not going up despite the bullishness of the market. However, in the past four days, XRP price has exploded by 87%, reaching a high of $0.5544. Big Chonis, a crypto mentor and trader, has just stated that there is a lot of euphoria around XRP, and a short looks good now.
XRP is facing short-term selling pressure after a massive rally
On the 12-hour chart, the TD Sequential indicator has presented a sell signal right as XRP price hit $0.558. The RSI has been heavily overextended since November 16, adding even more selling pressure for XRP.
XRP/USD 12-hour chart
Confirmation and validation of the sell signal could quickly drive XRP price towards the next support level at $0.426. XRP is presenting signs of topping out on the 15-minutes chart after being unable to break the high of $0.558 and getting rejected at $0.552.
XRP/USD 15-minutes chart
The digital asset has formed a descending triangle on the 15-minutes chart. Using the height of the pattern, we can determine the magnitude of the breakout or breakdown. Falling below $0.527 could potentially drop XRP price to the psychological level at $0.5. On the other hand, a breakout above the upper trendline would push XRP to a new 2020-high at $0.57.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
