XRP, the fourth largest encrypted currency depending on the maximum market, is heated with all traders entering, betting on increasing large prices. More than 70 % of Binance traders hold long positions, indicating strong confidence in the future of XRP. The encryption analyst, Ali Martinez, highlights that if XRP remains above $ 2, the momentum may gain and a height of 30 % to $ 2.60.
But with many merchants who accumulate in long situations, can the sudden price swing shake matters?
70 % of merchants who go to the future of XRP
According to the data shared by Martinez, the long/short XRP ratio for 4 hours 2.37, which means that betting on increasing prices exceeds the number of expected significantly.
A long/short percentage usually indicates that investors expect a high price. However, it can also indicate a crowded trade, which sometimes leads to sudden price fluctuations if the feeling is unexpectedly turned.
Moreover, Martinez revealed that 70.33 % of the accounts were holding long positions, while only 29.67 % were shortening the original. This represents a strong tilt towards optimism between XRP merchants.
Should merchants be careful?
While the bullish feelings are strong, traders should remain cautious. Often a long/short percentage increases the risk of references, especially if the price is moving against the majority.
according to CoinglassXRP has seen $ 3.1 million in liquidation in the past 24 hours. The long traders, who expected the price to rise, lost $ 1.73 million, while short traders, who are betting on the decline in prices, lost $ 1.36 million.
If the price of XRP decreases suddenly, long situations may be forced to close, which leads to more declines.
XRP aims to increase 30 %
Moreover, Martinez suggests that the price of XRP shows strong signs on a possible gathering. According to Martinez for 4 hours XRP price scheme analysisXRP tries to get out of the current monotheism.
If the price remains above $ 2, it may attract more buyers, which increases momentum and pushing XRP towards its next main resistance at $ 2.60 – a potential leap by 30 % of the current levels.
Currently, XRP is trading about $ 2.09, a decrease of 2 % in the past 24 hours, with the maximum market of $ 121.8 billion.
