XRP Short Setup: Bearish Signals Align 📉

Short-Term Downside Potential for XRP

All signs indicate a short-term pullback for XRP. Key resistance levels, upcoming token unlocks, macroeconomic factors, and weakening momentum suggest a possible downturn. Here’s why I’m taking a short position:

1️⃣ Trendline Resistance + Weak Volume

XRP is facing strong trendline resistance around $3.40, rejecting at the top of its range.

Declining volume signals fading buyer strength—failed breakouts without volume often lead to reversals.

Will it break or reject? Price action points to rejection.

2️⃣ XRP Unlocks = Increased Sell Pressure

On February 1, one billion XRP (~$3.1B) will be unlocked, flooding the market with additional supply.

Ripple has historically sold portions of these unlocks, adding downward pressure.

Past unlock events (Dec 1, Jan 1) led to price weakness—this time likely won’t be different.

More supply + weak demand = a potential drop.

3️⃣ Macro Factors: Strong DXY, Weak ETH/BTC, CPI Uncertainty

The U.S. Dollar Index (DXY) remains strong above 108.05, which is typically bad for risk assets.

Ethereum is struggling at resistance, altcoins are underperforming, and Bitcoin is facing key resistance.

The ETH/BTC pair looks weak on higher timeframes, signaling market uncertainty.

Upcoming CPI data could bring volatility, increasing downside risks.

Short Trade Plan: Managing Risk & Targets

💰 Target 1: $2.91 (December high – move stop-loss to entry at this level)

💰 Target 2: $2.64 - $2.67 (Golden Pocket, supported by the 50-day MA)

💰 Target 3: $2.51 (Near key support)

🛑 Stop Loss: If XRP closes above $3.40 with strong volume, I’m out.

Shorting XRP is always risky—not just financially, but because the XRP Army won’t let me mourn in peace if this trade goes south! Trade carefully, and as always, make your own decisions. 💙👽

$XRP