XRP Breakout Gains Momentum: $1.30 Short Squeeze Target Comes Into Focus
XRP is showing renewed strength after a key breakout, but one critical technical level could determine what happens next.
XRP is showing renewed bullish momentum after breaking out of a prolonged consolidation phase.
The cryptocurrency is trading at $1.09, up 3.5% over the past 24 hours and 5.7% over the past week, while daily trading volume has reached $1.89 billion.
With technical indicators improving, traders are now watching whether XRP can extend its rally toward the next major liquidation zone near $1.30.
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XRP Breakout Puts Short Sellers Under Pressure
XRP has broken above the key $1.0525 resistance level, confirming a bullish breakout after weeks of sideways price action. The asset has since traded within a 24-hour range of $1.04 to $1.11, suggesting bulls remain in control.
According to liquidation data, XRP’s short max pain level sits at approximately $1.30953, where around $5.79 million in short positions are concentrated. As XRP continues climbing, a move toward this level could trigger another wave of forced liquidations, potentially accelerating the rally.
The broader crypto derivatives market has already shown signs of this dynamic. More than $634 million in leveraged positions were liquidated over 24 hours, with roughly 73% of those liquidations coming from short sellers.
Within XRP itself, about 80.6% of liquidated positions were shorts, highlighting growing pressure on bearish traders.
Monthly RSI Signals Long-Term Strength
Beyond the short-term breakout, XRP’s longer-term technical picture is becoming increasingly interesting.
Crypto analyst EGRAG CRYPTO notes that XRP’s monthly Relative Strength Index (RSI) has reached its lowest level on record before beginning to flatten. He believes reclaiming key RSI levels at 40, 42, 46.5, 47.8, and eventually above 50 would strengthen the case for a sustained bullish reversal.
The analyst also points out that the last decisive monthly RSI move above 50 coincided with XRP’s approximately 500% rally during the previous bullish cycle, making this level an important milestone to monitor.
One Warning Bulls Should Watch
Despite the improving technical outlook, caution remains warranted.
As highlighted in our July 2 newsletter, long-term holder buying has declined by around 11%, while futures open interest has fallen approximately 11.5%. This indicates that although price is recovering, institutional and leveraged participation have not fully returned.
If buying volume strengthens, XRP could continue advancing toward the $1.30 liquidation zone. However, if demand remains subdued, the asset may first retest support around $1.06 before attempting its next leg higher.
For now, XRP’s breakout remains intact, but sustained buying pressure will ultimately determine whether the move evolves into a larger bullish trend.
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