XRP Price Analysis: Will Short Squeeze or Sell-Off Drive the Next Move?

The XRP price chart looks quiet after an 8.8% downturn last week, but don’t mistake that for stability. After getting rejected at $3.50, XRP ▼-1.23% has been trading in a tight band around $3.00–$3.20.

Moreover, Open Interest on Binance just hit an all-time high of $3.9 billion before cooling slightly. That kind of speculative buildup usually precedes fireworks. Here’s where XRP goes next:

“This surge marks a clear influx of new capital, signaling strong speculative activity.” – CryptoQuant

Traders Are Betting Against XRP

Data from CoinGlass shows that short positions account for 50.77% of XRP Futures contracts, slightly outpacing longs at 49.23%. Though the Long/Short Ratio remains below 1.0, indicating a bearish tilt.

While more traders are shorting XRP, excessive pessimism can often create the conditions for a short squeez e, especially if price action turns unexpectedly bullish.

Supporting the bearish case, XRP exchange netflows have remained positive for two straight days. At press time, CoinGlass data recorded $1.28 million in net inflows suggesting holders are sending tokens to exchanges.

Will XRP Break Higher or Drop to $2.90?

99Bitcoins analysts remain divided. Some see signs of a bear trap forming, where the crowding of short positions eventually backfires.

If capital continues flowing into derivatives markets it could trigger widespread liquidations on short positions, driving XRP past $3.20 and back toward $3.50.

However, if exchange inflows continue and bullish momentum weakens, XRP risks falling to $2.90 as longs get liquidated and bears take control.

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Technical Analyst Predicts “Mega Bullish Wave”

Regardless, XRP has more bullish sentiment going for it than negative.

Among the signals:

A bullish pennant breakout on the BTC chart, forecasting gains of 21% to 275%.
The Visible Range Volume Profile (VRVP) shows a volume void above the 5.75% mark, suggesting low resistance if price breaks above key levels.

At the time of writing, XRP is trading at $3.25 with 1.66% hourly gains. Whether this builds into a breakout or collapses into a deeper correction will depend on the wider macro news developing this week like Trump-EU trade deals, potential Fed rate cuts, and tech company earnings.

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Key Takeaways

The clock is ticking on one of crypto’s longest legal dramas and the XRP price could be ready to rocket.
All eyes are on Powell this week. As inflation lingers and labor metrics soften.

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