XRP News Today: XRP's Price at Tipping Point: Short Squeeze or Deep Correction?

XRP's price remains in a delicate stalemate, with buyers and sellers locked in a tug-of-war that has kept the token largely range-bound. Current trading data shows XRP hovering around $2.82, a level that reflects a 7% decline over the past week and a 6% drop over the last 30 days. However, the token has gained 32.5% over the past three months, indicating a broader technical bullish trend. The recent price stagnation underscores the growing tension between accumulation efforts by buyers and persistent selling pressure. Momentum indicators such as the Money Flow Index (MFI) have shown a rise, indicating some buying activity, while the Chaikin Money Flow (CMF) has declined, suggesting continued caution and outflows in broader market capital. This divergence signals a lack of consensus among market participants, with buyers absorbing dips but not with sufficient conviction to push the price upward.

Derivatives data further highlights the fragility of this balance, with a notable imbalance in open interest favoring short positions. Liquidation data reveals that over the past 30 days, short liquidations have totaled $1.79 billion on Bitget and $430 million on Binance, compared to significantly lower long liquidation totals. This imbalance implies a potential for a short squeeze should the XRP price rally above key resistance levels, such as $3.18. The largest cluster of short positions is currently stacked around this price level, and a breakout could trigger cascading liquidations, adding upward momentum to the token. Conversely, longs face their own vulnerabilities, with a concentration of positions at $2.69, a level that, if breached, could trigger forced selling and deepen the correction.

Despite these short-term uncertainties, there are potential catalysts that could shift the dynamics in favor of XRP. The anticipated approval of spot XRP ETFs by mid-October is seen as a major driver, potentially unlocking billions in institutional capital. Analysts have speculated that the introduction of such ETFs could catalyze a surge similar to the Bitcoin ETF effect seen in the previous year. Additionally, a Federal Reserve rate cut is expected this fall, which could further buoy speculative assets like XRP by making interest-bearing alternatives less attractive.

A third potential catalyst is the ongoing trial of XRP’s blockchain technology by SWIFT for cross-border payments. Although still in early stages, this initiative could position XRP as a cornerstone of modern global payment systems, especially as legacy technologies struggle to keep pace with the demands of contemporary trade. Ripple’s own stablecoin, RLUSD, is also gaining traction, with plans to expand its use in Japan by the first quarter of 2026. This development could boost demand for XRP as a settlement and funding asset, particularly in institutional contexts. The broader ecosystem is also evolving, with crypto treasury firms and Ripple's escrow strategy contributing to potential scarcity and upward price pressure.

Looking ahead, the XRP price remains at a critical juncture. Technical indicators and market sentiment suggest a precarious equilibrium, with derivatives positioning offering both risk and opportunity. The path forward depends on whether buyers can overcome lingering bearish momentum or if sellers continue to dominate the structure. A sustained move above $2.91 could weaken the current bearish trend and reestablish the $3.00 level as a new resistance. Conversely, a break below $2.69 could expose XRP to deeper corrections. For now, the only real hope for bulls is a potential short squeeze, where the current overhang of short positions could be overwhelmed by a sudden price rally.

Source:

[1] title1 (https://finance.yahoo.com/news/now-xrp-dead-next-swift-105438346.html)

[2] title2 (https://www.nasdaq.com/articles/xrp-smartest-cryptocurrency-buy-1000-right-now)

[3] title3 (https://coinpedia.org/news/xrp-news-can-the-clarity-act-push-ripple-to-new-highs/)

[4] title4 (https://beincrypto.com/xrp-price-hope-buyer-seller-stalemate/)

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