$XRP Setup | SHORT
XRP has lost its footing after a clean breakdown below the $1.38 support zone. The 1-hour chart shows price getting rejected at the EMAs, and momentum is clearly bearish. I am watching for a retest of broken support before considering continuation.
Trade Plan
Direction: Short
Entry Zone: $1.3350 – $1.3450
Stop Loss: $1.3780
TP1: $1.3180
TP2: $1.2900
TP3: $1.2500
Why This Makes Sense
• XRP closed below the critical $1.35–$1.38 support band, flipping this area into resistance. The 50-EMA at $1.40 and 100-EMA near $1.34 are now overhead caps, reinforcing the bearish structure.
• The daily RSI has dropped to around 40, showing weak momentum without yet signaling an oversold bounce. MACD remains below the zero line with no bullish crossover in sight.
• A long-to-short ratio of 2.32 means leveraged longs heavily outnumber shorts. If $1.32 fails, forced liquidations could accelerate the drop toward $1.28 and potentially $1.25.
• Despite institutional news like Standard Chartered's RLUSD custody deal, ETF inflows have slowed to roughly $12 million this month—about 75% lower than September.
Risk Note
This is a momentum short in a market that can squeeze hard on any headline. The upcoming XRPL protocol upgrade on October 23 and Ripple's Swell conference on October 27–29 are potential catalysts that could trigger a sharp reversal. Keep position size small, respect the stop loss, and do not chase entries far below $1.34.
What do you think?
Would you take this setup, or wait for a confirmed retest of $1.38 before entering?
