XRP Short Squeeze at $3 as Ripple, SBI Partner on RLUSD
Analysts warn that XRP could trigger a massive short squeeze if it breaks above the $3 resistance level. A recent liquidity heatmap reveals concentrated short positions around $3, suggesting that a forced liquidation wave may ignite sharp upward momentum. Currently trading between $2.85 and $2.95, XRP faces immediate resistance at $2.90–$2.95. A decisive move beyond this zone would expose the $3 mark and put short sellers at risk of liquidation.
On-chain data shows institutional engagement: XRP’s daily turnover spiked to 155 million, well above its 63 million average, indicating strong market participation. Long-term holders have realized over $2 billion in profits during the recent pullback, echoing the $375 million spike in profit-taking seen on July 24 when XRP peaked near $3.55.
Technical indicators, including the TD Sequential on the hourly chart, have flipped bullish, signaling a potential rebound. Despite $360 million liquidated across crypto markets recently, XRP buyers have defended support levels.
In a fundamental boost, Ripple has inked a memorandum with SBI Holdings to distribute its new stablecoin, RLUSD, in Japan starting Q1 2026. This partnership may enhance liquidity and adoption for Ripple’s ecosystem, further influencing XRP trading dynamics.
Bullish
This news is bullish for XRP both in the short and long term. A potential short squeeze at $3 could drive rapid price appreciation as forced liquidations trigger a surge in buying pressure. The July event, when profit-taking near $3.55 led to a sharp reversal, demonstrates how liquidity clusters can spark strong reactions. The bullish TD Sequential signal adds technical support for a rebound.
On the fundamental side, the Ripple–SBI partnership to distribute RLUSD in Japan by Q1 2026 strengthens network adoption and liquidity, enhancing market confidence. Institutional flows and strong trading volumes underline sustained demand. While profit-taking by long-term holders may introduce some volatility, the combination of technical momentum and ecosystem expansion suggests a favorable outlook, encouraging traders to position for upside.