XRP Surges as “Short Squeeze” Erases Days of Losses; What Comes Next?

  • XRP has been facing some immense pressure over the past few days and weeks, with the recent SEC lawsuit and an onslaught of exchange delistings rocking its price action
  • The crypto is now trying to gain some momentum, with bulls stepping up and propelling the token higher overnight following a break above a key technical pattern
  • Where the token trends in the mid-term will undoubtedly depend largely on whether or not bulls can sustain their momentum
  • With its fundamental strength growing weaker by the day, there’s a strong possibility that XRP’s price will continuously slide lower over the coming weeks
  • Drying volume, limited access for US residents, and uncertainty regarding its future may all hamper its outlook

XRP has been one of the worst-performing major altcoins throughout the course of this recent bull run. After seeing a parabolic rally that sent it from lows of $0.25 to highs of $0.90, the cryptocurrency began a descent that is still ongoing.

This rally’s timing was quite interesting, as it coincided with the Spark token airdrop and resulted in XRP seeing its first parabolic move in years.

How To Get Free Crypto  

After the dust settled and its price stabilized around $0.50, the SEC filed a lawsuit against Ripple, accusing them of conducting an unregistered security offering – among other things.

XRP Faces Immense Pressure as Fundamental Weakness Grows

At the time of writing, XRP is trading up over 10% at its current price of $0.24. This marks a massive surge from its weekly lows of $0.17 set just a few days ago.

The crypto has been holding steady above its $0.20 support level, but it remains unclear where this buy-side support is coming from.

Apart from Kraken, nearly every major U.S. exchange has announced plans to delist the token later this month.

This will force holders to either sell, hold in hopes Ripple winning the lawsuit with the SEC, or use decentralized trading platforms.

Coinbase Banner  

Latest Rally the Result of a Technical Breakout 

XRP’s massive move up overnight has likely come about due to a combination of a technical breakout and a short squeeze.

Funding rates for short positions across margin trading platforms had been quite extreme, which may explain this rally.

One analyst also noted that it was pushing against a symmetrical triangle pattern before the move, which may have sparked a flurry of buying pressure from swing traders.

“XRP symmetrical triangle, could really break either direction, no real bias here. Either direction should give a nice little pop. Money to be made here.”

Image Courtesy of Jonny Moe. Source: BTCUSD on TradingView.

The coming few days should shed some serious light on XRP’s outlook, and its immense fundamental weakness may cause every bounce to be aggressively sold into.

Featured image from Unsplash.
Charts from TradingView.

Go to Source
Author: Cole Petersen

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.