Short Interest Soars to New Highs as XRP Surges 56% This Week
The price of XRP is now up over 56% in the past week, surging over 30% in the last 24 hours alone. This run-up has been driven by speculation from a series of announcements made by Ripple. This includes a hint that its xRapid product could be released in the coming months and announcement that U.S. regional bank PNC Financial Services Group (PNC) will be joining RippleNet
However, bearish investors have taken the opportunity to build up the largest short position ever seen for the cryptocurrency on the Bitfinex exchange. Currently, more than 39,000,000 XRP have been sold short, which equals roughly $14.5 million.
This historic level of short interest suggests traders might be betting on a “sell-the-news” type scenario, where the price of XRP will fall off following the actual release of xRapid. If this is not the case, these shorts could be at risk of being squeezed, forcing them to close their positions, which would result in further gains for XRP.
More: XRP Short Interest Data
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.