XRP Under Fire: It Faces Short-Pressure as Price Slumps
Some investors are writing off XRP once more as they build large short positions amid the most recent market decline. One of the most recent to reveal a sizable short position in XRP is Lynk, a well-known cryptocurrency trader on X. Lynk said in a tweet earlier today that he had wagered $500,000 that the price of XRP would not increase from its present levels. This occurred after XRP’s price threatened to fall below $3 for the second time in the last day. Before rising again, the coin dropped 5%, from $3.16 to $3.01.
Lynk Says XRP Rally Is Finished
Notably, the Federal Reserve’s decision to maintain interest rates despite stronger economic statistics was followed by a drop in the price of XRP. The ruling caused Bitcoin to plummet and pulled the altcoin market as a whole lower. Lynk voiced doubts about a short-term rebound during the decline. He revealed that he has started a $500,000 short position on XRP with the goal of making $3 million. Lynk claims that XRP’s bull run has ended and that a collapse rather than a surge is more likely. Crucially, if XRP recovers to its most recent swing high of $3.65, this $500K short position would be liquidated.
Skeptics Say Lynk’s XRP Short Story Doesn’t Add Up
In the meantime, there were differing opinions about Lynk’s post. A lot of people question whether he truly opened such a big short position. The reason for the mistrust is that Lynk merely shared a chart illustrating XRP’s fall rather than a screenshot of the trade.
While some referred to it as a wrong move, others simply rejected the message as false. Among the doubters was EasyA co-founder Dom Kwok. According to him, the majority of anonymous accounts don’t truly adopt the stances they purport to. Kwok went on to say that Lynk would already be losing money if he had opened the short position.
Some users, such as SJLove, referred to the action as a miscalculation and said it was foolish to wager against a 25% price comeback on XRP. SJLove said that going long would have been the better course of action and that the trade could be liquidated swiftly if XRP retests its swing high.
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