XRP Price Analysis: Will Short Squeeze or Sell-Off Drive the Next Move?

[Redator]

The XRP price chart looks quiet after an 8.8% downturn last week, but don’t mistake that for stability. After getting rejected at $3.50, XRP ▲1.94% has been trading in a tight band around $3.00–$3.20.

Moreover, Open Interest on Binance just hit an all-time high of $3.9 billion before cooling slightly. That kind of speculative buildup usually precedes fireworks. Here’s where XRP goes next:

“This surge marks a clear influx of new capital, signaling strong speculative activity.” – CryptoQuant

Traders Are Betting Against XRP

Data from CoinGlass shows that short positions account for 50.77% of XRP Futures contracts, slightly outpacing longs at 49.23%. Though the Long/Short Ratio remains below 1.0, indicating a bearish tilt.

(CryptoQuant)

While more traders are shorting XRP, excessive pessimism can often create the conditions for a short squeeze, especially if price action turns unexpectedly bullish.

Supporting the bearish case, XRP exchange netflows have remained positive for two straight days. At press time, CoinGlass data recorded $1.28 million in net inflows suggesting holders are sending tokens to exchanges.

Will XRP Break Higher or Drop to $2.90?

99Bitcoins analysts remain divided. Some see signs of a bear trap forming, where the crowding of short positions eventually backfires.

(CoinGlass)

If capital continues flowing into derivatives markets it could trigger widespread liquidations on short positions, driving XRP past $3.20 and back toward $3.50.

However, if exchange inflows continue and bullish momentum weakens, XRP risks falling to $2.90 as longs get liquidated and bears take control.

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Technical Analyst Predicts “Mega Bullish Wave”

Regardless, XRP has more bullish sentiment going for it than negative.

Among the signals:

• A bullish pennant breakout on the BTC chart, forecasting gains of 21% to 275%.
• The Visible Range Volume Profile (VRVP) shows a volume void above the 5.75% mark, suggesting low resistance if price breaks above key levels.

At the time of writing, XRP is trading at $3.25 with 1.66% hourly gains. Whether this builds into a breakout or collapses into a deeper correction will depend on the wider macro news developing this week like Trump-EU trade deals, potential Fed rate cuts, and tech company earnings.

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Key Takeaways

• The clock is ticking on one of crypto’s longest legal dramas and the XRP price could be ready to rocket.
• All eyes are on Powell this week. As inflation lingers and labor metrics soften.

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