- XRP faces a critical price move, with a 10% rise potentially triggering $400 million in liquidations.
- However, strong bearish momentum and resistance at $2.70 could delay its recovery.
XRP is on the verge of a critical price move. If it climbs just 10%, it could trigger massive liquidations worth $400 million. Short sellers betting against its recovery are at risk, but XRP still faces challenges before a true breakout.
Short Sellers in Trouble?
XRP’s recent decline saw its price fall from $3.00 to $2.33, a 25% drop. Many traders placed short positions expecting further losses. Now, XRP is hovering around $2.47, with major resistance at $2.70.
If XRP jumps by 10%, these short positions could be wiped out, leading to liquidations. This would add buying pressure, possibly pushing XRP even higher. However, resistance at $2.70 remains strong, making a breakout uncertain.
Bearish Momentum Still Strong
Despite XRP’s recovery attempts, market indicators suggest bearish momentum is still in play. The Average Directional Index (ADX) sits at 35.0, well above the 25.0 threshold. This means the current downtrend is still strong.
For Ripple to gain momentum, the ADX needs to drop, signaling a weakening bearish trend. Until then, resistance at $2.70 could prevent further gains.
XRP: What’s Next?
XRP is moving within an ascending wedge pattern, which typically signals a breakout. If the price breaches $2.70, it could flip that level into support, setting the stage for a more sustainable recovery.
On the downside, if Ripple fails to break resistance, it could remain stuck between $2.33 and $2.70. This would likely result in more volatility as traders react to key price movements.
XRP is at a crucial point. A 10% rise could trigger liquidations, adding fuel to a potential rally. However, strong bearish signals and key resistance levels stand in the way. Traders should watch for a confirmed breakout before making any major moves.
