How do you use the long/short ratio? Take $XRP as an example: the overall account long/short ratio is 2.55 (71.8% long / 28.2% short), up from 2.47 an hour ago.
I usually look at it in three steps:
① Check for extremes: It’s already quite extreme. The side that’s heavily skewed often gets caught out by a sharp wick;
② Check the change: More traders are going long than an hour ago;
③ Check for divergence: The price is down 4.29% over 24 hours, yet even more traders are going long as the price falls—beware of a long-position cascade.
When everyone is on the same side, the market often has a surprise in store.
#XRP spot ETF holdings reach $1.7 billion; weekly inflows slow
Not investment advice—just something to keep an eye on.
I usually look at it in three steps:
① Check for extremes: It’s already quite extreme. The side that’s heavily skewed often gets caught out by a sharp wick;
② Check the change: More traders are going long than an hour ago;
③ Check for divergence: The price is down 4.29% over 24 hours, yet even more traders are going long as the price falls—beware of a long-position cascade.
When everyone is on the same side, the market often has a surprise in store.
#XRP spot ETF holdings reach $1.7 billion; weekly inflows slow
Not investment advice—just something to keep an eye on.