How do you use the long/short ratio? Let’s take $XRP as an example: the market-wide account long/short ratio is 2.53 (71.7% long / 28.3% short) (2.53 one hour ago).
I usually look at it in three steps:
① Check for extremes: The current reading is somewhat extreme, and the crowded side is more vulnerable to a reversal;
② Check the change: It’s basically unchanged from one hour ago;
③ Check for divergence: The price is down 4.47% over 24 hours, yet more traders are still going long. Keep an eye on stop-losses for long positions.
When sentiment reaches an extreme, that’s often when independent thinking matters most.
#XRP spot ETF holdings reach $1.7 billion; weekly inflows slow
Markets are highly volatile, so please manage your risk.
I usually look at it in three steps:
① Check for extremes: The current reading is somewhat extreme, and the crowded side is more vulnerable to a reversal;
② Check the change: It’s basically unchanged from one hour ago;
③ Check for divergence: The price is down 4.47% over 24 hours, yet more traders are still going long. Keep an eye on stop-losses for long positions.
When sentiment reaches an extreme, that’s often when independent thinking matters most.
#XRP spot ETF holdings reach $1.7 billion; weekly inflows slow
Markets are highly volatile, so please manage your risk.