How to use the long/short ratio? Let’s use $XRP as an example: the overall market long/short ratio across all accounts is 2.54 (Long 71.8% / Short 28.3%) (1 hour ago: 2.55).
I usually look at it in three steps:
① Check extremes: right now it’s leaning toward an extreme—typically, the crowded side is often harvested in the opposite direction;
② Check changes: shorts have increased compared with 1 hour ago;
③ Check divergence: over the past 24h, the price is -2.24%, but there are still more people going long as the price falls—be careful with long positions and stop-losses.
Sentiment is a lagging indicator, so don’t rely on it too much.
#XRP现货ETF持仓17亿美元周流入放缓 #XRP
Purely my personal opinion—please view it rationally.
I usually look at it in three steps:
① Check extremes: right now it’s leaning toward an extreme—typically, the crowded side is often harvested in the opposite direction;
② Check changes: shorts have increased compared with 1 hour ago;
③ Check divergence: over the past 24h, the price is -2.24%, but there are still more people going long as the price falls—be careful with long positions and stop-losses.
Sentiment is a lagging indicator, so don’t rely on it too much.
#XRP现货ETF持仓17亿美元周流入放缓 #XRP
Purely my personal opinion—please view it rationally.