Majority of XRP Traders Go Long Despite Bearish Market: Risky Move?

XRP’s recent downturn has fueled speculation among traders, as the cryptocurrency’s price has plunged over 30% from its January high of $3.2.

Despite the decline, a majority of market participants remain optimistic, expecting a potential rebound, but this sentiment may be risky given the volatile nature of the market.

Data shared by analyst Ali Martinez indicates that around 70.33% of traders currently hold long positions on XRP, showing a strong belief that the price will recover.

This optimism sharply contrasts with the prevailing fear from recent market crashes, suggesting that many expect the cryptocurrency to hit a bottom soon.

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However, this bullish sentiment could backfire. Historically, the market often moves contrary to widespread expectations, and with most investors betting on a recovery, the risk of another drop remains significant.

Open interest in XRP has also remained stable, staying above $3.4 billion despite the turbulent market conditions.

Interestingly, some analysts still hold a positive outlook. A Korean crypto expert has projected that XRP could surge to between $10 and $20, though this prediction remains contentious, especially since XRP has yet to surpass its all-time high from 2018. While the optimism persists, the market’s unpredictable nature leaves the outcome uncertain.

Alexander Stefanov