Pundit Opens Short XRP Trade: Here’s His Downward Target

Amid the ongoing market struggles, a market pundit and Chainlink advocate has opened a short XRP trade, expecting an over 20% drop.

This bearish commentary came from Quinten Francois, co-founder of review platform weRate, at a time when XRP and the rest of the market are facing renewed pressure. Specifically, XRP has dropped 8.38% over the past three days, now trading at the delicate position of $2.02 as the bears attempt to push below $2.

Pundit Opens XRP Short

However, despite the ongoing downtrend, XRP appears to have held up much better than the rest of the crypto market. For context, XRP has dropped 3.14% this year, but the global crypto market has witnessed a more substantial 8.49% decline within the same period, with Bitcoin down 6.79% and Ethereum seeing a 15.8% crash.

However, the market pundit believes XRP could drop further. Specifically, he expects XRP to collapse to $1.6, where he plans to take profit, representing a 20.7% drop from the current price and a more substantial 30% collapse from his entry price of $2.29

Reasons Behind the Short Position

Notably, Francois identified three reasons he singled out XRP for this bearish commentary and believes the further crash to $1.6 could play out. Highlighting the first reason, he pointed out that XRP faced a massive rejection from the golden zone

For the uninitiated, the “golden zone” describes the area between the 50% and 61.8% Fibonacci retracement levels, which traders often watch for meaningful reactions during a pullback

XRP Chart | Quinten FrancoisWhen an asset climbs back into this zone but fails to break through and turns lower, it signals that the retracement has stalled and the prevailing trend is likely re-asserting itself. After XRP recovered to the $2.21 peak on Nov. 30, it faced resistance and has since continued to collapse.

For the second reason behind his bearish sentiments, Francois called attention to a bearish divergence on the MACD. This bearish divergence typically occurs when the price makes higher highs within a particular timeframe while the MACD makes lower highs, indicating weakening momentum.

Meanwhile, the third reason is a series of lower highs that XRP has continued to record within the timeframe in question. Specifically, since hitting a high of $2.27 on Nov. 28, XRP has witnessed lower highs. These include $2.22 on Nov. 29, $2.15 on Nov. 30, and then $2.16 on Dec. 1. This points to weakening resilience from the bulls.

However, whether XRP would drop to Francois’s $1.6 target remains uncertain. For perspective, the last time XRP saw that low, besides the Oct. 10 crash, was in April 2025, eight months ago