XRP / Ethereum

XRP Short Hedge in Play Against ETH & BTC Divergence

133
๐Ÿšจ๐Ÿ“‰ XRP Short Hedge in Play Against ETH & BTC Divergence โš–๏ธ๐Ÿ’ฅ

Right now, Bitcoin is sitting at a major lost level: 115,700. Unless we reclaim that zone, the market structure remains bearish. If BTC does reclaim itโ€”Iโ€™ll turn ultra bullish. But until then, I must actively look for some shorts.

And in a sea of liquidity, XRP might offer reliable setups for short-side trades.

๐Ÿ“Š 1. XRP vs Ethereum (2D)
We're right at the top of a multi-year descending channel on XRPETH XRPETH. This is a textbook short entry zone, with a potential drop back toward the midline or lower boundary.
โœ… Setup: Short XRP / Long ETH โ€” clean hedge with relative strength in ETH.

โฑ 2. XRPBTC XRPBTC (30m)
We now have 4 confirmed bearish divergences on the short-term chart:
๐Ÿ”ป MACD
๐Ÿ”ป RSI
๐Ÿ”ป Momentum
๐Ÿ”ป Money Flow Index (MFI)
This setup has a high probability of reversal, particularly at these horizontal resistance levels.

๐Ÿ“‰ 3. XRP.D XRP Dominance (2D)
Rejection at 5.53%, again. Now with added Fibonacci confluence levels on the pullback:

0.618 Fib sits right at 4.03%
0.5 Fib near 4.75% (current battle zone)
Deeper liquidity zones at 3.58% and 3.12%

If dominance fails to hold the 4.75% neckline, we could see a full Fibonacci retrace back to the golden ratioโ€”a strong potential drop.

๐Ÿ“Ž Throwback Chart: Nov 2020
๐Ÿ“ˆ Here's a setup I posted years ago:
๐Ÿ‘‰ XRP is NOT Bitcoin โ€“ back to 0.23 or off to the 0.76 roof
XRP is NOT Bitcoin - (back to 0.23 or off to the 0.76 roof)

That idea nailed the explosive move from $0.23 to $0.76, and then the collapse back to $0.17.
XRP has a history of sharp pops followed by deep drops โ€” and this looks like another one might be brewing.

๐Ÿ” Macro Bearish Factors:
๐Ÿ“ฆ XRP supply = 100 Billion (vs BTCโ€™s 21M cap)
๐Ÿง  Ripple controls over 42.5% of total XRP (wallets + escrow)
๐Ÿ“‰ 94% of XRPL txns hold no real valueโ€”network activity mostly spam
๐Ÿ•ณ๏ธ โ€œDark poolโ€ OTC volume suppresses price discovery
๐Ÿงฑ UNL validator model exposes centralization and network fragility
๐Ÿ“Š XRP dominance structurally capped near 5.5%, now rejecting hard again

๐Ÿ“Œ In conclusion:
This is not about bias, it's about structure and data.
When the charts line up with fundamentals, and liquidity is flowing toward ETH and BTC, XRP becomes the natural hedge.
Short XRP. Long ETH. Watch BTC.

One Love,
The FXPROFESSOR ๐Ÿ’™

Disclosure: I am happy to be part of the Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. Awesome broker, where the trader really comes first! ๐ŸŒŸ๐Ÿค๐Ÿ“ˆ

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.