"Shorts are trapped"...XRP $7 scenario, has it really begun?

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A scenario of a sharp rise is re-emerging, with analyses suggesting that short-selling forces are trapped in the Bitcoin and XRP (Ripple) markets.

According to the cryptocurrency media outlet Bitcoinist on April 25 (local time), crypto analyst RWA Investor claimed that XRP and Bitcoin's price movements are almost identical, and bearish bettors have simultaneously fallen into a 'trap'. He analyzed that XRP is highly likely to soon break through the current resistance range of $1.50-$1.60.

If this resistance level breaks, XRP is projected to rapidly rise to the $2-$3 range. However, it is predicted that after a 'pump and dump' pattern with a significant correction following the initial rise, a third upward wave will officially begin. He emphasized that a massive short squeeze (buying pressure to liquidate short positions) would occur during this process, ultimately leading to a rise to the $7 range.

Changes in the macroeconomic environment were identified as catalysts for the rise. In particular, it was analyzed that if the Federal Reserve's interest rate cuts and quantitative easing (QE) begin, liquidity would flow into the market, triggering a strong bull run. He explained that QE is a key variable in the market after the end of the tightening cycle.

In the short term, technical resistance levels are key variables. Another analyst, CashTrades, analyzed that XRP has room for further upside to the $1.50-$1.53 range. However, he added that this scenario is valid only if the $1.39 support level is maintained.

Ultimately, XRP's direction is highly likely to be determined in conjunction with Bitcoin's trend. As Bitcoin tests the $79,000 resistance level, XRP's ability to break through its major resistance lines will also be simultaneously put to the test.

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