XRP News Today: XRP Faces Potential Short Squeeze Rally With 11% Upside

Prominent crypto analyst CryptoInsightUK has suggested that XRP may be on the brink of a short squeeze rally. The analyst highlighted several key indicators, including dense liquidity stacked above current price levels, rising open interest, and a structure that mirrors previous pre-squeeze conditions. According to the analyst, the lower liquidity cluster is around $1.90, while the upper zone, where a potential short squeeze could be triggered, is around $2.40. This implies that shorts are at risk of forced liquidations if the price begins to accelerate upward.

The analysis was based on data from various sources, including @velo_xyz, which showed that open interest has been steadily climbing since an unexplained spike on June 24. During this period, the premium remained heavily negative, and funding rates oscillated between positive and negative. This suggests that there has been a net addition of short positions to the open interest for XRP, implying that a crowded short trade could now be structurally exposed.

Layering this with TradingDiff’s liquidity heatmap, CryptoInsightUK inferred that a short squeeze for XRP is likely. While the timing remains uncertain, the combination of rising open interest, negative premium, and dense liquidity above suggests growing asymmetry in risk for short sellers. However, the analyst also noted that both ETH and XRP have some liquidity below current levels, acknowledging the possibility of a fakeout or liquidity sweep downward before any aggressive upside movement.

A final observation focused on Ethereum’s changing liquidity landscape, which may have broader implications for the market as a whole. The analyst noted that the liquidity above current levels has shifted, possibly indicating that shorts are being closed or that new longs are building below the current price. This shift could visually reduce the intensity of liquidity above, potentially setting the stage for a short squeeze in XRP.

Whether XRP can reach the $2.40 liquidity pocket remains to be seen, but the conditions for a short squeeze appear to be in place. At the time of the analysis, XRP was trading at $2.18, suggesting that the cryptocurrency is poised for a potential rally if the conditions for a short squeeze are met.