Ripple (XRP) has declined significantly over the past few days that has now given the bears more reason to push further. The number of shorts that until recently was on the verge of a massive decline is now once again struggling to get above the 21 Day EMA. The daily chart for XRPUSDShorts shows the there is still plenty of room for further upside. The number of shorts is going to at least test the previous all time high, if not rise higher. The pattern on the daily chart for XRPUSDShorts shows that the bears are going to have an upper hand towards the end of the year. With the beginning of 2019, we would see the bears pushing for a rally which will most likely take us towards the long anticipated altcoin season.

As long as XRPUSDShorts remain above the 21 Day EMA, there is no hope of a successful recovery. Ripple (XRP) may defy Bitcoin (BTC) movements short term or stall correction but it will have to ultimately complete its correction to the full extent. Present circumstances indicate that this correction will most likely push Ripple (XRP) below $0.20 in the next few days. This will also give the bears more confidence and the number of shorts will rise towards the previous all time high. That would be the ideal time to start looking for long entries. A lot of people have been waiting for Ripple (XRP) below $0.20. A few months back, it would have seemed completely ridiculous considering Ripple (XRP) had just reached an all time high above $3.2.

Chart for XRP/USD (1D)

Ripple (XRP) has come a long way from being an idea to an actual working solution that has now major financial institutions using its services to make their businesses more efficient. A few years back, a lot of people would have found it very hard to believe that Ripple (XRP) might one day end up as the second largest coin by market cap. There was no community support and no acceptance. It was a common to see a large number of people in crypto community publically bashing Ripple (XRP) for being a bank coin run by a centralized entity. However, soon afterwards people see this “bank coin” making serious moves, and all of a sudden the hate and negative towards XRP was nowhere to be seen. I have mentioned it many a time in my analyses how the sentiment shift that we saw in XRP proves that anything is possible in this market.

The team behind Ripple (XRP) is one of the smartest people in this industry. It is completely astounding to see how they made a “bank coin” and a “centralized coin” into a “favorite coin”. The same people who once criticized Ripple (XRP) are now calling for the listing of their favorite coin on Coinbase. This sentiment shift is unlikely to change anytime soon. Ripple (XRP) has succeeded in getting a lot of new investors on its side. This explains how Ripple (XRP) was able to take Ethereum (ETH)’s place as the second largest coin by market cap.