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Amid the ongoing market volatility, XRP’s short sellers seem to be in trouble as market sentiment points toward a reversal. On-chain metrics suggest that the bulls are back in action, strongly supporting XRP, the native token of Ripple Labs.
XRP’s Major Liquidation Area
Data from the on-chain analytics firm Coinglass revealed that short sellers are poised to lose over $57.80 million worth of XRP. According to on-chain metrics, short sellers are heavily over-leveraged at the $3.25 level, where they have $57.80 million worth of open positions.
At the same time, XRP’s price is showing strength and has reached the $3.21 level, with 3.25% upside momentum in the past 24 hours. Conversely, bulls are significantly over-leveraged at the $3.00 level, where they have opened $107.5 million worth of long positions.
These open positions are consistently rising, raising concerns for short sellers as the price hints at a potential upside rally. Based on trader sentiment, if XRP’s price continues to rise and reaches the $3.25 level, nearly $57.80 million worth of short positions could be liquidated.
Amid this volatility, participation from traders and investors has decreased, resulting in a 51% drop in trading volume.
XRP Price Prediction
According to expert technical analysis, XRP appears bullish as it is poised to break out of its consolidation zone, which it has been stuck in for the past six days. Based on recent price action, if XRP closes a daily candle above the $3.34 level, there is a strong possibility it could soar by 35% to reach the $4.50 level in the coming days.
On the positive side, XRP’s Relative Strength Index (RSI) is at 65, indicating potential upside momentum and further suggesting a buying opportunity.
Combining on-chain metrics with technical analysis suggests that bulls are currently in control and could help XRP break out of its consolidation zone.