XRP News Today: XRP Traders Watch $3.13 Breakout Potential Amid $1.84 Billion Short Squeeze Risk

XRP has remained in a consolidation phase around $3.04 in recent days, with market participants closely watching price movements amid regulatory uncertainty and shifting on-chain dynamics. The cryptocurrency has gained approximately 4.2% over the past week but continues to trade within a narrow range, leaving both bulls and bears in a stalemate [1].

On-chain data indicates a notable shift in investor sentiment. The supply of XRP held on centralized exchanges has dropped to 5.66%, the lowest level in a month, reflecting a sharp decline of 3% from August 9 [1]. This withdrawal of XRP from exchanges suggests a move toward self-custody and reduced selling pressure, as traders typically transfer assets to exchanges before initiating sell orders [1].

However, the market faced a setback when the U.S. Securities and Exchange Commission (SEC) announced it would delay decisions on XRP-related ETF applications until October 2025. This news led to a 2% price drop in the 24 hours following the announcement, highlighting the continued regulatory uncertainty surrounding XRP [1].

Technically, XRP is currently trading within a narrowing wedge between $2.94 and $3.35. The immediate support level is seen at $2.90, which has historically acted as a reliable bounce point. A successful defense of this level could form a double bottom pattern, which is typically viewed as a bullish signal [1]. The RSI is currently at 32, indicating oversold conditions, while the MACD remains negative, suggesting further downward movement may occur before a potential recovery [1].

A critical level for bulls is $3.13, which analysts believe must be reclaimed for the upward trend to continue. A decisive move above this threshold could trigger upward momentum toward the next resistance at $3.35 [1]. The liquidation profile also supports this scenario. According to Bitget data, over $1.84 billion in short positions are concentrated between $3.04 and $3.42. If prices break above $3.05-$3.15, these short positions could trigger a short squeeze, pushing prices higher [1]. By contrast, long liquidations in this range total less than $800 million, creating an imbalance that could favor upward movement if key levels are breached [1].

Despite the regulatory challenges, adoption of XRP continues to grow. The token is now accepted for a range of services, including flights and hotel bookings. Ripple has also launched an XRP Rewards Event to engage its community, which has generated renewed interest among supporters [1].

Whale activity remains strong, with large holder transactions reaching a multi-month high. This increased accumulation by major investors suggests continued confidence in XRP’s long-term potential, even amid recent price fluctuations [1].

Traders are currently focused on two key price zones. The support area between $2.90 and $2.94 has shown resilience, and a breakdown could push XRP toward the next support level near $2.65. On the upside, a sustained move above $3.13–$3.35 with strong volume could confirm a breakout and initiate a short squeeze, potentially leading to further gains [1].

Year-to-date, XRP has gained more than 400%, but the recent consolidation has led to frequent false breakouts, catching both long and short positions. Until a clear breakout occurs, this pattern is likely to continue.

The current price remains just above $3, with market participants testing key support and resistance levels within the established range. The path forward depends largely on whether XRP can break free of this consolidation phase and attract broader market participation [1].

Source: [1] XRP (XRP) Price: $1.84 Billion in Short Positions Could Trigger Squeeze Above $3.13 (https://blockonomi.com/xrp-xrp-price-1-84-billion-in-short-positions-could-trigger-squeeze-above-3-13/)