Ripple (XRP) Surges 5% on Short Squeeze... Technical Breakout Triggers Rebound Signal

▲ XRP/AI Generated Image ©

XRP (Ripple) broke through a downtrend line that had lasted for over a month, triggering a short squeeze (buying pressure generated to close or cover short positions) and recording a strong rally that outpaced the overall cryptocurrency market's growth rate. Ripple's monthly escrow management and accumulation by whale investors further bolstered the upward trend.

According to cryptocurrency market data site CoinMarketCap on July 3 (local time), XRP recorded a strong surge, rising 4.97% over 24 hours to $1.14. The market analyzed that breaking through the downtrend line, which had continued for over a month, and the $1.075-$1.10 resistance zone was the direct catalyst for this rebound.

A large-scale short squeeze occurred during this price increase. According to CoinDesk, over 80% of the liquidated position losses during the price surge came from XRP short positions. Stop-loss buying by leveraged short investors continued in a chain reaction, expanding the upward movement. Ali Martinez analyzed that the Supertrend indicator on the 4-hour chart showed a buy signal for the first time since mid-June. The market is also paying attention to the possibility that large short liquidation zones remaining above $1.11 could stimulate further price increases.

Positive trends also continued on the supply and demand side. During Ripple's monthly release of 1 billion XRP from escrow, approximately 70% of the total volume was re-escrowed, limiting new supply into the actual market. TokenPost reported that these volumes were absorbed by the market without significant price impact. Simultaneously, large outflows of XRP from exchanges were observed, raising the possibility of accumulation by whale investors. The overall market's risk-on sentiment, with the total cryptocurrency market capitalization rising by 2.24%, also supported the upward trend.

In the short term, the key variable is whether the $1.08-$1.10 range can be maintained as a support level. If this range is stably held, further gains up to the $1.15-$1.18 resistance zone are possible. In particular, the upcoming Senate vote on the U.S. cryptocurrency market structure bill, the CLARITY Act, expected in late July or August, is attracting attention as a major variable that will influence the future regulatory environment and investor sentiment. Conversely, a drop below $1.08 would weaken the short-term uptrend, raising the possibility of retesting the $1.06 support level.

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