Summary ⚈ XRP shorts hit a 2-week low as the token fails to breach $2.20. ⚈ XRP’s RSI is 38, and recent Ripple token unlocks add selling pressure. ⚈ No clear bearish catalyst exists, but bullish sentiment grows amid Ripple-SEC case progress. The ratio of newly-opened XRP shorts compared to long positions reached a 2-week low on May 5, as the token’s price failed to breach resistance at $2.20. To be more precise, 55.07% of positions opened in the past 12 hours have been longs, and 44.93% have been XRP shorts , per data retrieved by Finbold from market intelligence platform CoinGlass . XRP long-short ratio chart. Source: CoinGlass At press time, the price of XRP had fallen to $2.15, marking a 1.67% decline on the daily chart. Prices briefly touched the $2.14 mark on two occasions, but quickly bounced off, demonstrating a strong degree of demand at those levels. XRP price 1-day chart. Source: Finbold Is the reduction in XRP shorts a bullish signal or a false alarm? XRP’s relative strength index ( RSI ) currently sits at 38, indicating that the cryptocurrency has not yet entered oversold conditions. In addition, Ripple’s recent unlock of 1 billion tokens has led to an increase in selling pressure. With that being said, 700 million of those tokens were promptly re-locked , so the development is unlikely to drive prices below crucial support levels, at least on its own. Conversely, an increase in speculative bullish positions isn’t something that will likely cause a rebound in price — but it does speak to widespread bullish sentiment. Moreover, there appears to be no clear bearish catalyst at play — at present, the drop in price appears to be solely the result of market-wide dynamics and exhaustion on the part of the bulls. On the other hand, positive developments regarding the Ripple v. SEC case , which is expected to conclude soon, could cause enough of a sentiment shift to keep XRP out of the danger zone in the near term. Featured image via Shutterstock The post XRP shorts at 2-week low despite crash below $2.20 appeared first on Finbold .
