XRP, the fourth largest cryptocurrency by market capitalization, warms as the traders go everything, betting on a major price wave. More than 70% of Binance traders occupy long positions, showing great confidence in the future of XRP. Crypto analyst Ali Martinez stresses that if XRP remains above $ 2, he could take momentum and rise from 30% to $ 2.60.
But with so many traders rushing into long positions, could a sudden swing price make things happen?
70% of merchants become bull in the future of XRP
According to data shared by Martinez, the 4 -hour XRP long / short ratio reached 2.37, which means that traders who bet on price increases are considerably more numerous than those expecting reductions.
As a rule, a higher long / short ratio suggests that investors expect the price to increase. However, this can also indicate overcrowded trade, which sometimes leads to sudden oscillations if the feeling moves unexpectedly.
In addition, Martinez revealed that 70.33% of the accounts held long positions, while only 29.67% ran the asset. This marks a strong inclination to optimism among XRP traders.
Should traders be careful?
Although the bullish feeling is strong, traders should remain cautious. A high long / short ratio often increases the risk of liquidation, especially if the price moves compared to the majority.
According to CorciLass, XRP experienced $ 3.1 million in liquidations in the last 24 hours. Long traders, which expected the price to increase, lost $ 1.73 million, while short traders, which bet on a drop in prices, lost $ 1.36 million.
If the price of XRP suddenly decreases, long positions and leverages could be forced to close, causing new drops.
XRP aims for a 30% increase
In addition, Martinez suggests that the XRP price shows solid signs of a potential rally. In accordance with the analysis of 4 -hour price prices Martinez 4 hours, XRP tries to get out of its current consolidation phase.
If the price remains greater than $ 2, it can attract more buyers, increase the momentum and push XRP to its next major resistance to $ 2.60, a potential jump of 30% of current levels.
Currently, XRP is negotiating around $ 2.09, down 2% in the last 24 hours, with a market capitalization of $ 121.8 billion.
