Binance Traders Are All-In on Ripple (XRP): Should You Be Worried?
TL;DR
- Binance traders hopping on the XRP bandwagon have been highly bullish with their positions lately, perhaps driven by the conclusion of Ripples legal case against the SEC.
- However, is too much positive sentiment around a volatile cryptocurrency necessary good news for it?
Popular crypto analyst Ali Martinez outlined earlier today the substantial change in the number of long positions for XRP on the worlds largest exchange. As the graph below demonstrates, the longs have grown significantly within the span of just a day and currently represent more than 72% of all futures positions on Binance.
72.28% of traders with open $XRP positions on Binance Futures are leaning bullish! pic.twitter.com/yFOxjTEnd1
Ali (@ali_charts) March 23, 2025
As with all things in life, this data could be reviewed from both sides. First, we can speculate that perhaps a portion of these investors could know something we dont or anticipate a big development on the horizon. Such could be a potential approval of an XRP ETF in the States, which might have an immediate positive impact on the assets price.
Or, maybe they expect XRPs value to rise sharply after Ripples CEO, Brad Garlinghouse, announced earlier this week that the case against the SEC has concluded with a favorable ending for the company.
This indeed had an immediate but brief impact on XRPs price, which jumped from $2.3 to $2.6 but then retraced to the current $2.4. Additionally, it brought debates about whether it was another classic sell-the-news event.
The second perspective we can discuss from the growing number of longs on Binance Futures is much more bearish. After all, remember Warren Buffetts wise words: buy when others are fearful and sell when they are greedy.
The crypto analytics platform Santiment has also warned multiple times in the past that cryptocurrencies tend to do the opposite of what the crowd expects. Consequently, XRP could actually go for a correction soon, which would have an even more profound and painful effect if it leads to a cascade of liquidated long positions.
The post Binance Traders Are All-In on Ripple (XRP): Should You Be Worried? appeared first on CryptoPotato.
Read more: https://cryptopotato.com/binance-traders-are-all-in-on-ripple-xrp-should-you-be-worried/
Text source: CryptoPotato
