The more people pile into longs, the lower the price goes. I'm bearish on $XRP .
The overall long/short account ratio is now 3.08, up from 2.79 24 hours ago.
Long accounts currently make up 75.5%—the vast majority are waiting for a rally.
Yet over that same 24-hour period, the price fell 3.04%.
The large traders' long/short position ratio is now 2.23, considerably lower than the account ratio.
More traders are rushing to the long side, but large traders haven't followed nearly as closely.
I think this looks more like retail traders trying to catch a falling knife than big money building positions.
The more crowded side is often the side with the most stop-loss orders.
If $XRP breaks below 1.29 decisively, I think these crowded longs will become fuel for the next leg down.
On the other hand, if the price gets back above 1.34, I'll admit I was wrong, and this bearish thesis is invalidated.
Do you think these longs will see a bounce first, or get liquidated first?
The overall long/short account ratio is now 3.08, up from 2.79 24 hours ago.
Long accounts currently make up 75.5%—the vast majority are waiting for a rally.
Yet over that same 24-hour period, the price fell 3.04%.
The large traders' long/short position ratio is now 2.23, considerably lower than the account ratio.
More traders are rushing to the long side, but large traders haven't followed nearly as closely.
I think this looks more like retail traders trying to catch a falling knife than big money building positions.
The more crowded side is often the side with the most stop-loss orders.
If $XRP breaks below 1.29 decisively, I think these crowded longs will become fuel for the next leg down.
On the other hand, if the price gets back above 1.34, I'll admit I was wrong, and this bearish thesis is invalidated.
Do you think these longs will see a bounce first, or get liquidated first?
