XRP (Ripple), $600 Million 'Evaporates' as it Breaks Out of Trading Range... Will Short Squeeze Extend to $1.3?

▲ XRP/AI-generated image

As XRP broke through its long-term trading range and rebounded, short position investors faced massive liquidation pressure. With the remaining distance to the maximum pain point, formed just above $1.3, narrowing to around 20%, the possibility of an additional short squeeze has emerged as a key market variable.

According to U.Today, a cryptocurrency specialized media outlet, on July 2 (local time), XRP broke out of its long-term stagnation range of $1.02 to $1.06, crushing bearish bets. As the XRP price moved sharply upwards, large leveraged short positions were forcibly liquidated, and over $634 million in margin positions were closed across the entire cryptocurrency market in the last 24 hours.

According to CoinGlass data, approximately 73% of total market losses were concentrated among short position investors. The concentration was even stronger in the XRP market, where about 80.6% of XRP-related losses occurred from bearish bet investors.

Although the initial wave of liquidations has passed, the core max pain point for large XRP sellers still remains at $1.30953, which is higher than the current price. Funds totaling $5.79 million are concentrated at this price level. As XRP rose to $1.0829, the distance to this level narrowed to 20.93%, and the media explained that this trend has already triggered some defensive stop-loss orders at intermediate price levels.

Technically, the breakout of the key resistance line at $1.0525 was the starting point for this rally. However, with overbought indicators pointing to short-term overheating, the upward momentum was diagnosed as temporarily exhausted. The media analyzed that buying pressure is likely to take a breather, and XRP could see a slight pullback towards its previous resistance line of around $1.065.

The short-term key is whether $1.065 can be turned into a support level. If this level holds, XRP could establish a mid-term upward foothold towards the key target area of $1.30953. Conversely, if it fails to defend $1.065, this breakout is likely to be limited to a short-term overheating trend that occurred after short position liquidations.

[Article Key Summary]

-XRP broke through the $1.02 to $1.06 trading range, triggering massive liquidations of short positions.

-The total cryptocurrency market liquidation volume in the last 24 hours exceeded $634 million, with approximately 80.6% of XRP losses concentrated among bearish bet investors.

-Whether $1.065 can be converted into support has been presented as a key criterion for further upside towards the $1.30953 max pain point.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*