XRP Under Pressure: Why Analysts Say It Might Be the Best Crypto to Short Right Now

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As XRP’s price drops, prominent analysts are ringing the alarm bell, warning traders to prepare for a potential bull trap. With bearish signals intensifying and key market data pointing toward reduced momentum, XRP could soon offer one of the most strategic shorting opportunities in cryptocurrency.

Price Action Suggests Weakness

From late March to early April, XRP’s price declined sharply, falling to $2.03 — a level not seen since March 11. Currently trading around $1.96, XRP has seen a 7.22% decrease in the past 24 hours and a 16.46% drop over the last seven days. Despite some speculation about a reversal, the trend remains bearish, signaling the possibility of continued losses.

Analyst Astekz Warns of a Trap

Crypto analyst Astekz believes that XRP may set a trap for overly bullish traders. He believes the asset has approached a critical resistance zone but has consistently failed to break through. This failure could be a key indicator of a looming bull trap. In this scenario, the price briefly surges above resistance levels, luring in buyers before sharply reversing and catching them off guard.

Astekz points out that if XRP does experience a false breakout, it could quickly tumble, presenting a lucrative opportunity for short sellers to capitalize on the downward move. His warning emphasizes caution, especially for traders banking on a bullish rebound.

Bitcoin Whales and XRP Volatility

Another analyst, Vincent Van Code, highlights a fascinating dynamic between Bitcoin whales and XRP’s price behavior. He notes that large BTC holders execute substantial trades within the XRP/BTC pair, triggering ripple effects across the broader market.

These high-volume buy and sell actions from whales may indirectly compress price volatility on the XRP/USDT pair. Arbitrage bots working to exploit price differences across pairs may also be contributing to this stability, albeit temporarily. Van Code questions whether these whales deliberately influence XRP or engage in strategic swing trades for short-term gains.

Derivatives Data Confirms Bearish Sentiment

Further supporting the bearish narrative, derivatives market data from Coinglass reveals weakening interest in XRP. Open interest has slipped by 0.34%, indicating a decline in trader participation, particularly among long positions.

*^{Source: XRP Futures Data | Coinglass}*

More notably, options volume has dropped by over 51%, signaling a steep fall in speculative activity. Combined with a persistently negative funding rate, this data paints a picture of dwindling confidence among traders and a growing lean toward bearish sentiment.

Final Thoughts

While XRP continues to grab headlines, not all the news is promising. With analysts forecasting a potential bull trap and data pointing toward decreasing investor interest, the asset appears increasingly vulnerable to further losses. If the trap is sprung, this could mark a prime opportunity for savvy traders to short XRP and profit from the dip.

Market participants should always stay alert, closely monitor resistance levels, and consider technical signals and broader whale movements before making high-risk trades in volatile conditions.