XRP/USDT Short Opportunity: Daily CHoCH and Fresh Supply Zone 
2025-02-08
Category: None

XRP/USDT is presenting a high-probability short opportunity as it approaches key technical levels. A Change of Character (CHoCH) on the daily timeframe signals bearish momentum, while a fresh H1 supply zone at $2.42 could serve as a strong resistance point. With these factors aligning, a potential downside move to the $2.18 level is in focus.

Key Technical Factors Supporting the Short

Daily CHoCH Formation:
XRP/USDT has printed a CHoCH on the daily chart, indicating a shift from bullish to bearish market structure. This signals a possible trend reversal as sellers begin to take control.

H1 Fresh Supply Zone at $2.42:
On the H1 timeframe, a newly formed supply zone around $2.42 aligns with the bearish narrative. This zone is likely to act as a strong resistance, providing an ideal entry point for short positions.

Target Level at $2.18:
If the supply zone holds, the next logical support level lies at $2.18, making this a reasonable take-profit target.

Risk Considerations
Volume Confirmation: Ensure there is bearish momentum (increased sell volume) as price taps the supply zone.
Invalidation: A clean break above $2.45 would invalidate the short setup.