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▲ XRP
The selling offensive by XRP bears has reached its limit, triggering warnings of a short squeeze explosion.
According to crypto media outlet The Crypto Basic on September 28 (local time), XRP is defending key support levels despite repeated downward pressure, putting pressure on the bear camp. Analysis suggests that with selling positions excessively accumulated in the futures market, and the price halting its decline and holding firm, the risk of a massive forced liquidation, where bears must buy back their positions at a loss, is escalating.
On-chain and derivatives indicators suggest that a capitulation phase for sellers is imminent. Funding rates on major exchanges have fallen into negative territory, intensifying the overcrowding of short positions, but spot buying pressure has solidly underpinned the floor price, preventing further declines. This supply-demand imbalance is typically regarded as a classic precursor to a powerful short squeeze, which often involves a large-scale liquidation of selling positions, explosively driving up the price.
Technical analysis also lends weight to the possibility of an upward breakout from the downtrend line. XRP, having firmly established the lower support line of a long-term falling wedge pattern, has successively reclaimed short-term moving averages, setting the stage for a rebound. Analysts diagnose that if the sellers' defense line collapses, a cascading liquidation of accumulated short positions could occur, leading to a rapid price surge rally.
Experts warn that if the bears' selling offensive fails, the price they will have to pay will be enormous. As institutional spot ETF inflows and on-chain transaction volume recovery provide downside rigidity, it is observed that the speed of price increase could exceed market expectations the moment stop-loss buying from short positions flows in.
[Key Article Summary]
-XRP bears' continuous attempts to drive down the price have failed, increasing the risk of a short squeeze.
-Despite negative funding rates and overcrowded short positions in the futures market, the spot support line remains robust.
-If the selling defense line collapses, forced liquidation of accumulated short positions could be triggered, leading to a rapid explosive rally.
*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.*
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