- XRP’s $3 target could trigger $272M short liquidations, fueling a bullish rally.
- Derivatives data shows 188% volume surge, reflecting growing XRP trader confidence.
- RSI nears overbought at 69.57, suggesting a short-term correction in the horizon.
XRP is showing significant signs of strength, sparking discussions about a potential short squeeze and a run toward new all-time highs. If XRP reaches $3, approximately $272.3 million worth of short positions could face liquidation.
This surge could accelerate price momentum, forcing short traders to close positions and buy back XRP. According to JAVON MARKS, an analyst, alternative long-term metrics suggest a push beyond $11 is possible, indicating substantial bullish sentiment in the market.
XRP Price Surge and Market Performance
At press time, the live XRP price stands at $2.67, reflecting a 12.53% increase over the last 24 hours. The 24-hour trading volume surged to $18.63 billion, signaling heightened investor activity. The XRP derivatives market has also experienced notable growth.
As per Coinglass data, derivatives volume spiked by 188.65%, reaching $22.98 billion. Open interest, representing the total value of active contracts, rose by 21.74% to hit $4.28 billion. These metrics highlight increasing trader confidence and growing liquidity within the XRP market.
Options Trading and Long/Short Sentiment
Options trading data further supports this trend. The options volume increased by 17.41%, reaching $4.01K, while options open interest climbed by 16.20% to approximately $992.33K. Such growth reflects an uptick in speculative trading, with investors positioning themselves for further price action.
Additionally, the Long/Short ratio reveals a strong bullish sentiment. On Binance, the XRP/USDT Long/Short ratio for accounts stands at 2.2499, indicating more long positions. Similarly, OKX shows a ratio of 1.43, reinforcing the bias toward longs. Notably, Binance’s top traders hold an even stronger long bias, with ratios of 2.5273 for accounts and 3.1446 for positions.
Liquidations and Technical Indicators
Liquidation data across multiple timeframes highlights XRP’s volatility. In the last 24 hours, total liquidations surged to $27.89 million. Short traders faced heavier losses, contributing $17.63 million, compared to $10.27 million in liquidated longs.
Over the 12-hour period, shorts lost $10.93 million, while longs accounted for $3.75 million. This trend indicates that bears are struggling as bullish momentum builds.
However, technical indicators suggest caution in the near term. XRP’s 1-day Relative Strength Index (RSI) reads 69.57, signaling that the asset is approaching overbought conditions.
Additionally, the 1-day Moving Average Convergence Divergence (MACD) trades below the signal line. This hints at a possible correction or trend reversal before further upward movement.
