XRP, May 29 Short Squeeze War Predicted..."Game Changes When CME Opens"

▲ XRP

XRP has entered a period of increased volatility ahead of CME's launch of 24-hour futures trading. Market analysis suggests that XRP could rise to $1.58 if a breakthrough of the descending parallel channel is confirmed. It was also observed that an unexpected rise, coupled with a concentration of short positions, could lead to a short squeeze.

According to Coingape on May 25 (local time), XRP fell by 0.41% that day, with trading volume recorded at $1.33 billion. Coingape reported that XRP volatility could increase this week as CME begins 24-hour XRP futures trading on May 29. Once this trading begins, institutional investors will be able to trade XRP even when traditional financial markets are closed and on weekends.

CME announced in February that it would offer cryptocurrency futures and options 24 hours a day, 7 days a week. Coingape explained that this measure focuses on allowing institutional investors to follow cryptocurrency market trends even during traditional financial market holidays. It also stated that the CME gap, which arises from the difference between Friday's closing price and Monday's opening price, could be reduced.

XRP rose by 5.8% after CME first announced this plan in February. In the two days following the announcement on February 19, XRP climbed from $1.38 to $1.46. Based on past reactions, Coingape analyzed that the launch of 24-hour futures trading on May 29 could again act as a catalyst for price increases. CME also plans to add XRP to the NASDAQ Crypto Index on June 8.

In terms of technical trends, the breakthrough of the descending channel was presented as a key variable. XRP has been moving within a descending channel dominated by bears since May 15, but has recently been attempting to break through the upper resistance. Coingape believes that if XRP surpasses $1.35 and then reconfirms that price level as support, the next upward phase could open.

The upward target was set at $1.58, coinciding with the Fibonacci 1.68 level. This represents an upside potential of approximately 16% from the current structure. The Relative Strength Index recorded 51, showing a trend where buying pressure pushed the price to the upper end of the channel. Coingape analyzed that XRP needs to form multiple higher highs above 51 on the Relative Strength Index to secure upward momentum towards $1.58.

The Money Flow Index was also cited as an indicator supporting the possibility of an increase. The Money Flow Index recorded 69, and Coingape explained that this figure indicates that funds are flowing into XRP. If the Money Flow Index continues to rise, the launch of CME's 24-hour futures trading could be a catalyst for a 16% increase in XRP.

In the derivatives market, there is a clear concentration of short positions. According to Coinglass, the XRP long/short ratio was 0.85. This indicator has remained below 1 since May 3, meaning that many investors are betting on a decline even ahead of the launch of 24-hour XRP futures trading.

Coingape pointed out that the market's excessively bearish positioning could actually have a positive effect on XRP's price. It explained that if an unexpected rise occurs, short-position investors would close their positions to cut losses, and in this process, XRP could be pushed up to $1.58. The launch of CME's 24-hour futures trading, inclusion in the NASDAQ Crypto Index, and the concentration of short positions have emerged as key variables driving XRP's volatility this week.

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