A crypto enthusiast who goes by the name Mr. Huber on Twitter has drawn attention to an interesting occurrence on the XRP chart. He posted a weekly chart of XRPUSD shorts on the Bitfinex crypto exchange, noting that for the first time, XRP shorts have reached an all-time low.
He wrote, “Want some good news? XRP shorts just made an all-time low for the first time since they have existed.”
Want some good news? XRP shorts just made an all time low for the first time since they have existed. pic.twitter.com/u7850pj7Iq
— Mr. Huber🔥🦅🔥 (@Leerzeit) February 28, 2023
When a trader first sells an asset to later repurchase it or cover it at a lower price, a “short” or “short position” is created. When a trader thinks the price of an asset is likely to fall in the near term, they may decide to short that asset.
Thus, XRP shorts at an all-time low might be a positive indication. Data from Coinglass shows XRP funding rates on exchanges remained neutral to positive.
Funding rates are intended to reflect the general sentiment of market participants and their expectations for the future of the market.
When funding rates are positive, it might suggest that traders are long or expect the market to go up in the long run. On the other hand, a neutral funding rate might imply that traders are rather neutral while waiting for the next price move.
Among the XRP community, hopes of a favorable resolution of the Ripple-SEC lawsuit abound. In 2022, James K. Filan, who usually posts updates on the Ripple lawsuit, predicts that the ruling judge might make a decision on or before March 31, 2023.
Ripple CEO Brad Garlinghouse predicted that the ruling might come in the first half of 2023. At the time of writing, XRP was marginally higher in the last 24 hours at $0.381.
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