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Analyst Says XRP Is Gearing Up to Wipe Out Every Short Until $5.40. Here’s the Significance
A recent prediction has sent shockwaves through the XRP community, with a prominent analyst suggesting that the token is on the cusp of wiping out every short position until $5.40. The notion is rooted in a classic short-squeeze scenario, where a rapid price surge forces traders holding short positions to close their trades at a loss, fueling further upward momentum.
The analyst’s statement underscores a shift in market structure, heightened derivatives activity, and notable liquidity dynamics that could set the stage for a high-impact move. The forecast is particularly significant given XRP’s recent technical breakout signals and an extremely high concentration of short interest poised for liquidation.
As of this report, XRP is trading at $3.19 after successfully breaking through the psychological $3 barrier, a level that had previously served as both resistance and consolidation over recent weeks. The surge above this point has drawn attention to a “liquidation corridor” extending up to $5.40, where clusters of stop orders and short positions are likely to be triggered.
Clearing this zone could unleash a chain reaction of forced buying as short sellers scramble to cover their losses, potentially driving prices sharply higher. The derivatives landscape reveals that XRP’s open interest remains elevated, with a substantial portion of that exposure stemming from short positions. This creates the technical conditions necessary for a powerful squeeze.
On-chain metrics present a more complex picture, however, showing significant whale activity in recent weeks, comprising both accumulation and distribution. Some of these movements indicate long-term bullish positioning, while others hint at potential selling pressure during rallies. As such, traders should remain vigilant to sudden liquidity shifts that can either amplify or cap a breakout.
For XRP to fulfill this projection and make good on its promise to annihilate every short until $5.40, several key factors must align. These include sustained buying volume, rising funding rates, continued accumulation, and the absence of significant selling pressure at interim resistance levels.
Market Strategist Says XRP Will Melt Faces This Week. Here’s why
Source: timestabloid.com
