Prominent crypto and forex trader Lars Kooistra has revealed his current positions in two major cryptocurrencies, Shiba Inu (SHIB) and XRP, presenting a unique trading strategy. Despite the recent positive momentum surrounding XRP, Kooistra has placed a short position on the asset, while he holds a long position on Shiba Inu, driven by his technical analysis and market outlook.

Kooistra’s Short Position on XRP

Kooistra, who is well-known for his methodical approach to trading, disclosed that he still holds a 40% short position on XRP, despite the cryptocurrency’s recovery in recent weeks. His decision to short XRP comes after evaluating the cryptocurrency’s technical patterns using his high-probability technical cycle time (TCT) model. The model suggests that XRP could face further downside pressure, despite its impressive performance in early 2025.

Kooistra entered the short position on XRP nearly a week ago, with a clear target of $2.00 for the asset. His current position remains risk-free, after closing 60% of the trade with a modest profit of 2.60%. Despite XRP’s positive start to the week, Kooistra is not convinced that the current momentum will sustain, and he anticipates further declines in the near future.

The trend of shorting XRP has gained momentum recently, especially as the token’s price has been showing signs of stagnation. Well-known analysts Koroush AK and Cole Garner have also recommended shorting XRP, believing the asset could face significant losses in the coming weeks. However, these large short positions create the risk of a potential short squeeze if XRP experiences an unexpected surge, which could lead to substantial price rallies.

Kooistra’s Bullish Outlook on Shiba Inu

In contrast to his bearish view on XRP, Kooistra is notably bullish on Shiba Inu (SHIB). He has opened a mid-term long position on SHIB, expecting the cryptocurrency to see significant growth based on his analysis of the market structure. Kooistra’s strategy is driven by the TCT model 1 accumulation schematic, which signals that SHIB is in a position for a rally.

While Shiba Inu has not been as widely discussed in mainstream media as other larger cryptocurrencies, its technical setup is compelling to Kooistra. He believes that SHIB is poised for growth, despite its volatility and the competitive nature of the broader crypto market. His decision to go long on Shiba Inu highlights his confidence in the cryptocurrency’s potential to outperform the market in the coming months.

The Correlation Between XRP and Shiba Inu

Interestingly, Shiba Inu and XRP have shown a noticeable price correlation in recent times. Both assets have been trending upward, although Shiba Inu has shown a stronger bullish momentum. This correlation adds an element of risk to Kooistra’s strategy, as the price movements of both assets may continue to mirror each other. However, his belief in the technical patterns of Shiba Inu outweighs the potential risks, prompting his bullish stance.

Currently, XRP is trading at approximately $2.13, while Shiba Inu is priced at $0.00001266. Despite their similar price movements, Kooistra remains focused on his technical analysis, which has led him to take differing positions on the two cryptocurrencies.

Conclusion

Lars Kooistra’s contrasting approach to trading Shiba Inu and XRP illustrates the complexity and unpredictability of the cryptocurrency market. By betting on Shiba Inu’s growth while shorting XRP, Kooistra is making a calculated risk based on his technical analysis and understanding of the market’s structure. Although both assets are experiencing upward momentum, Kooistra’s outlook suggests that Shiba Inu has stronger bullish potential in the near term, while XRP may face further downside pressures. As the market continues to evolve, it will be interesting to see how these positions develop and whether Kooistra’s strategies prove successful.