Crypto analyst Koroush AK, who boasts over eight years of market experience, has warned XRP traders considering long positions on the asset.
In a recent analysis, he noted that XRP’s bearish momentum is intensifying, urging market participants to reassess their risk exposure.
He shared a daily XRP chart displaying what resembles a descending or falling wedge characterized by aggressive lower highs and expanding volatility. Currently trading around $1.94, XRP faces immediate resistance near the $2.06 mark. According to Koroush, this zone could lure in premature buyers before another leg down.
Deeper Risk Ahead
Koroush emphasized that “the gradient of the shift in trend” is growing steeper, pointing out that failed rallies and consistent lower highs at key levels present stronger opportunities for short positions rather than long ones. This implies that market sentiment remains bearish, with any rallies more likely to face rejection than follow-through.
Indeed, XRP has struggled to sustain bullish momentum. After briefly touching $1.60 on Monday, it rebounded to just above $2 in the following days, only to dip again. As of press time, XRP is hovering around $1.94.
Market watchers like Koroush AK interpret these price movements as signs of underlying weakness. He suggests that short positions may offer better risk-reward setups in the short term while waiting for a potential major rebound. Notably, several other analysts share this bearish outlook.
One such voice is analyst Cole Garner, who recently urged traders to short XRP and “thank him later,” expressing strong conviction in the asset’s bearish trend.
Another analyst, Crashius Clay, argues that XRP is significantly overvalued and lacks the market conditions and retail buying pressure to sustain higher prices. He warns of significant downside risk with a market cap exceeding $100 billion and limited support.
Drawing comparisons to Shiba Inu’s dramatic price collapse, Clay considers XRP to be one of the most inflated assets ripe for devaluation. He recently disclosed a $1 million short position on XRP, which he claims remains profitable.
XRP Support Levels to Watch
Koroush AK’s chart suggests that if XRP fails to hold above the $2.06 resistance level, it may revisit support zones at $1.56 and $1.30. These levels could offer potential bounce opportunities. However, if the downtrend deepens, even these supports may break. Some market commentators have even predicted a drop toward the $1 level.
Essentially, these analysts argue that the current market conditions are not favorable for bullish speculation on XRP. Instead, disciplined traders may find more promising setups by shorting failed rallies at resistance levels.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
