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.

Lorenzo Stroe Independent Analyst

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.

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