XRP News Today: XRP Liquidations Wipe Out Bearish Bets Spur Short Squeeze Potential

Recent movements in XRP have delivered a significant setback to bearish traders, as the asset’s brief dip below $3 triggered over $12 million in liquidations, according to analysis from market commentator Xaif [1]. The sharp price drop created a bear trap, wiping out heavily leveraged short positions and shifting momentum to buyers. This event has positioned XRP for potential bullish momentum, with the asset now consolidating in a key range and signaling signs of a short squeeze.

The liquidation event erased critical downside pressure, as buyers began re-entering the market at higher levels. Xaif noted that the price action below $3 marked a reversal, with the setup now favoring a breakout [1]. XRP’s current consolidation between $3.35 and $3.60 reflects accumulating buying pressure at higher lows, while resistance levels show weakening selling activity. This phase of sideways movement is described as a buildup of energy rather than stagnation, with technical indicators suggesting liquidity is forming just above current levels.

Market dynamics indicate a potential short squeeze is emerging. With bearish bets largely neutralized below $3 and open interest recovering, XRP appears poised for an upward surge. Breaking the $3.60 resistance could trigger a sharp rally as short-sellers scramble to cover positions. Historical patterns after similar liquidation-driven reversals often show accelerated price moves, and Xaif highlights that the current consolidation zone’s narrow range and low volatility are precursors to strong breakouts [1].

The path of least resistance is now upward, as XRP’s key support at $3 has held firm. Consolidation near $3.50 suggests accumulation rather than distribution, with technical indicators gaining momentum. Analysts emphasize that the market has shifted from panic selling to strategic position-building. A confirmed breakout above $3.60 could lead to a rapid wave of bullish momentum, potentially pushing XRP toward the $3.80 to $4.00 range, as liquidity gaps above current levels are expected to amplify buying pressure [1].

The market has effectively cleared excessive bearish leverage, providing XRP with a clearer trajectory for gains. While the immediate focus remains on the $3.60 level, the broader implications point to a structural shift in sentiment. Traders and investors are now closely monitoring whether increased buying volume can propel the asset beyond its current range, potentially setting the stage for a sustained rally.

Source: [1] [XRP Bears Got Wiped Out Hard Below $3. Here’s What Is Coming] [https://timestabloid.com/xrp-bears-got-wiped-out-hard-below-3-heres-what-is-coming/]