XRP News Today: XRP Trapped in $2.94–$3.35 Wedge Amid $1.84 Billion Short Position Risk

XRP remains locked within a narrow price range around $3, with key resistance and support levels creating a high-stakes environment for both long and short traders. The token has been trading between $2.94 and $3.35 on the 4-hour chart, forming a wedge pattern characterized by repeated failed breakouts and bounces that have left market participants in a state of anticipation [1]. These price movements are not random; they are part of a structured setup designed to trap traders, particularly as over $1.84 billion in short positions cluster above $3.04 on Bitget. A sustained move above $3.13 could trigger a short squeeze, potentially wiping out leveraged short positions and creating upward momentum [1].

The 7-day price gain of 4.2% has sparked renewed interest among bulls, especially as whale activity has increased, with TapTools reporting multi-month highs in large wallet purchases of XRP [1]. This accumulation suggests that long-term holders see value in the asset despite the current consolidation. However, the structural setup remains intact, and EGRAG Crypto cautions that a close above $3.13 is necessary to confirm a bullish continuation. If XRP falls below $2.90 on the 4-hour chart with a strong bearish candle, a five-wave decline toward $2.65 could unfold, signaling a shift in the short-term trend [1].

The recent action has also drawn attention from analysts, with CasiTrades noting a clean RSI divergence and a full 5-wave structure from the recent low at $2.94. This technical validation suggests the bounce was driven by market mechanics rather than emotional buying [1]. Meanwhile, the Binance community has highlighted the resilience of XRP holders during the psychological test near the sub-$3 level, emphasizing the asset’s strong retail following [2].

Despite the SEC’s recent settlement with Ripple, which has been viewed as a regulatory tailwind, XRP has shown limited momentum compared to other altcoins such as Chainlink. Analysts speculate that a major acquisition or macro-level catalyst could push XRP toward $5–$7 in the short term [7], though such forecasts remain speculative and unconfirmed.

The broader crypto market is showing signs of recovery, with Bitcoin futures open interest hitting record levels, yet this has not directly translated to XRP’s price action [6]. Traders are advised to remain cautious, as the wedge pattern persists and no clean breakout has occurred. The risk/reward profile has slightly tilted in favor of the bulls, given the heavy concentration of short positions above $3.04. A decisive move above $3.35 or a breakdown below $2.94 with high volume would be necessary to shift the balance and provide direction.

Sources:

[1] title1: XRP Price Holds $3: Will a Short Squeeze Force a Breakout? (https://coinmarketcap.com/community/articles/68a537d46c44a00b0a34a93c/)

[2] title2: To the XRP faithful: The psychological siege has failed. The (https://www.binance.com/en/square/post/28500956934769)

[7] title7: Crypto Fear & Greed Index | Bitcoin Sentiment (https://www.binance.com/en-AU/square/fear-and-greed-index)