TLDR
- XRP supply on exchanges dropped to 5.66%, showing less selling pressure
- SEC delayed XRP ETF decisions until October 2025, causing a 2% price drop
- Price is hovering around $3.04, with key support at $2.90 and resistance at $3.13-$3.35
- Over $1.84 billion in short positions exist between $3.04-$3.42, creating potential for a short squeeze
- Whale activity remains high despite recent price movements
The cryptocurrency XRP (XRP) has experienced a period of consolidation in recent days, with prices hovering around the $3 mark amid mixed signals from regulators and market participants.
XRP currently trades near $3.04, maintaining a delicate balance between bullish and bearish forces. The price has gained about 4.2% over the past week, though it remains trapped in a narrow range that has frustrated traders on both sides.
One of the most telling indicators comes from on-chain data. The supply of XRP held on centralized exchanges has fallen to just 5.66%, marking the lowest level in a month. This represents a sharp 3% decline since August 9, according to Glassnode data.
This exodus from exchanges suggests investors are moving their XRP holdings into self-custody wallets, typically a sign of decreased selling pressure. When traders intend to sell, they often transfer assets to exchanges first, making this reduction a potentially bullish signal.
The market received a setback when the Securities and Exchange Commission (SEC) delayed decisions on several spot ETF applications, including the XRP one. This pushback to October 2025 triggered a 2% price drop in the 24 hours following the announcement.
Price action shows XRP trading inside a narrowing wedge between $2.94 and $3.35. This zone has become a battleground where neither bulls nor bears have gained a decisive edge.
Market Structure and Technical Analysis
The current price sits near a critical support level at $2.90, which has previously served as a strong bounce point. Technical analysts are watching this level closely, as maintaining it could potentially form a double bottom pattern – generally considered a bullish signal.
The Relative Strength Index (RSI) currently reads 32, placing XRP in oversold territory and suggesting a potential bounce might be due. However, the Moving Average Convergence Divergence (MACD) indicator remains negative, hinting that further downside may occur before any sustained recovery.
Market participants have identified $3.13 as a key level that must be reclaimed for bulls to maintain control of the trend. A decisive move above this threshold could trigger upward momentum toward the next resistance at $3.35.
The liquidation landscape adds another dimension to this analysis. Data from Bitget reveals over $1.84 billion in short positions stacked between $3.04 and $3.42. This concentration of shorts creates the conditions for a potential short squeeze if prices move decisively above $3.05-$3.15.
By comparison, long liquidations in the same range total less than $800 million, creating an imbalance that technically favors upward pressure if certain price levels are breached.
Adoption and Whale Activity
Despite regulatory uncertainties, XRP adoption continues to expand. The token can now be used for various purchases including flights and hotels. Ripple recently launched an XRP Rewards Event for community members, generating excitement among supporters.
Whale activity remains robust according to data from TapTools, with large holder transactions reaching a multi-month high. This continued accumulation by large investors occurs even after recent price dips, potentially indicating confidence in XRP’s longer-term prospects.
For traders looking to navigate this market, the key levels remain clear. The support zone between $2.90-$2.94 has proven resilient so far. If this breaks down, analysts suggest the next support could emerge around $2.65.
On the upside, clearing the $3.13-$3.35 resistance zone with strong volume could trigger a short squeeze and potentially open the path toward higher prices.
The year-to-date performance remains impressive, with XRP up over 400% despite recent consolidation. However, until price breaks decisively from its current range, the pattern of fakeouts catching both long and short traders may continue.
The most recent market data shows XRP maintaining its position above $3, but traders remain cautious as the token continues testing both support and resistance levels within its established range.
The post XRP (XRP) Price: $1.84 Billion in Short Positions Could Trigger Squeeze Above $3.13 appeared first on Blockonomi.
Â
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.