XRP 22% rally triggers short liquidations; $1.40–$1.50 key resistance test
XRP surged about 22% in 24 hours to ~$1.26, clearing a July breakout level and putting more short positions at risk. Data from Hyperliquid and CoinGlass shows a “liquidation ladder”: short liquidations could rise to ~$2.2M if XRP reaches $1.38. That forced short-covering can add incremental buy pressure during the rally.
However, traders now face a make-or-break zone at $1.40–$1.50, described as the higher-timeframe resistance needed to turn the move into a true breakout. Funding stayed moderately positive (about 0.0100% over eight hours), which supports the squeeze but isn’t yet an extreme, euphoria-style signal.
The article also flags a potential supply overhang: Santiment tracked roughly 1.1% of circulating XRP supply moving after being dormant (avg ~518.95 days). Exchange volume did not spike, suggesting wallet-to-wallet transfers so far. Still, a separate 49M XRP block in an unidentified wallet could become active sell-side pressure if it reaches exchanges while XRP is testing $1.40–$1.50.
Key levels for XRP traders: $1.38 is the near-term short-squeeze target; $1.40–$1.50 is the structural breakout test. Downside levels to watch include $1.32/$1.28 for squeeze support and $1.19 or $1.13 if long liquidations accelerate.
Bullish
The news is framed around a positive catalyst for XRP: a sharp ~22% rally has activated a short-liquidation chain that can create additional, forced demand. With liquidation exposure rising toward ~$2.2M at $1.38, the probability of near-term continuation increases because shorts must buy back as price rises.
That said, it’s not a “set and forget” bullish signal. The article highlights a decisive resistance zone at $1.40–$1.50. If XRP clears it, the squeeze can evolve into a broader breakout. If it stalls there, profits can trigger renewed selling and reduce the squeeze’s ability to sustain price.
A key risk is potential supply reactivation from dormant XRP. The Santiment tracking suggests some old tokens have started moving, and a large 49M XRP block could become sell-side pressure if it reaches exchanges at the wrong time—similar to past squeeze attempts that fizzled when dormant or whale-linked supply hit order books.
Short-term impact: bullish bias due to forced short-covering and moderately positive funding. Long-term behavior depends on whether XRP can convert liquidation-driven momentum into sustained strength through $1.40–$1.50 without triggering a supply-driven reversal.