XRP Faces Short-Pressure: Francois Expects 20% Drop to $1.60

TLDR

• Quinten Francois, a market pundit and Chainlink advocate, has opened a short position on XRP, expecting a 20% drop.
• Francois entered the short trade at $2.29, anticipating XRP to fall to $1.60, representing a 20.7% decline from the current price.
• Despite XRP’s relative strength compared to the broader crypto market, Francois believes the asset will face further downward pressure.
• Francois points to a bearish divergence on the MACD, signaling weakening momentum for XRP and the potential for further losses.
• XRP has formed a series of lower highs since November 28, indicating a loss of bullish momentum and supporting Francois’s bearish outlook.

Quinten Francois, a vocal market pundit and Chainlink advocate, has opened a short trade on XRP, expecting a decline of more than 20%. Francois, co-founder of the review platform weRate, took this action at a time when XRP has been facing pressure in the broader crypto market. Currently, XRP is trading at $2.02, down 8.38% in the last three days.

Francois Targets a 20% Drop in XRP

Francois entered the short position at $2.29, anticipating further losses for XRP. The crypto asset has shown relative strength compared to the broader market, which has seen a larger decline. However, XRP’s price is under pressure, and Francois believes it could fall to $1.60, representing a 20.7% drop from the current value.

Despite XRP’s recent drop of 3.14% this year, it has outperformed the broader crypto market, which is down 8.49%. Bitcoin has also seen a decline of 6.79%, and Ethereum has fallen 15.8%. Still, Francois is positioning himself for a bearish move on XRP, as he expects a deeper drop in the coming days.

Francois pointed to a bearish divergence on the MACD as a key indicator of weakening momentum for XRP. A bearish divergence occurs when the price of an asset reaches higher highs while the MACD forms lower highs. This suggests that the upward momentum is weakening and a reversal may be on the horizon.

Another concern for Francois is the series of lower highs that XRP has been forming since November 28. The asset reached a peak of $2.27 on that date, but it has since struggled to maintain upward movement. XRP’s subsequent highs have been lower: $2.22 on November 29, $2.15 on November 30, and $2.16 on December 1.

This pattern indicates that the bulls are losing strength and the bears may soon take full control. Francois is betting on this pattern continuing, expecting XRP to eventually fall to his target of $1.60.

XRP Faces Resistance at Key Levels

XRP briefly recovered to $2.21 on November 30, but it faced resistance at this level and reversed course. After this failure to break through, XRP continued its decline, signaling a possible stall in the retracement. When an asset fails to break through key resistance levels, it often signals that the prevailing trend will resume.

Francois sees this as an indication that XRP’s upward momentum has stalled, and the asset is now more likely to follow a downward trajectory. The inability to maintain gains at the $2.20 level, combined with weakening momentum, reinforces his bearish outlook on XRP.

Francois intends to take profits if XRP reaches his target of $1.60. This target would mark a 20.7% decline from the current price and a 30% drop from his entry price of $2.29. Although it remains to be seen whether XRP will reach this low, Francois’s position continues to look profitable as the asset’s decline progresses.

XRP‘s struggles are part of a broader trend in the crypto market, which has been facing pressure in recent months. While XRP has held up better than Bitcoin and Ethereum, it has still seen significant drops. Francois believes that this relative strength will not be enough to keep XRP from falling further.

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