XRP: Are shorts panicking? This signal could trigger a massive surge
XRP is consolidating under key resistance. Short sellers are feeling the heat as a potential short squeeze looms. Could a breakout be imminent?
XRP: The Calm Before the Storm?
XRP is trading around $1.96, slightly up, but this stability masks a strong tension between buyers and sellers. On-chain data shows negative funding rates, a sign of bearish sentiment, even as the price holds firm. This divergence between sentiment and price action often creates the conditions for a violent bullish reversal.
Historically, when pessimism dominates without further price declines, short sellers find themselves trapped. This is the case here: An accumulation of short positions could serve as fuel for a rapid surge if a key resistance level were to break.
The $2.00 zone is capturing all the attention. More than just a psychological threshold, it concentrates numerous liquidation orders. A breakout with volume would trigger a short squeeze, transforming a simple rise into a vertical rally.
Scenarios: How Far Can XRP Go?
From a technical standpoint, XRP is forming a consolidation structure reminiscent of past pre-explosive phases. The key support between $1.78 and $1.85 remains crucial: as long as it holds, pressure increases on sellers.
According to analyst Ali Martinez, a falling wedge is forming, a pattern often indicative of a bullish reversal. A close above $2.00 would open the path toward $2.23, then potentially $2.50 if momentum confirms.
Conversely, a sharp rejection below $2.00, combined with Bitcoin weakness, could invalidate this scenario. A break below $1.78 would then expose XRP to a deeper correction toward $1.50. Everything now hinges on one key factor: Volume as it approaches $2.00.
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Simon Dumoulin
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
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This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
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