XRP Short Sellers on the Brink of Surrender… Will the $4 Era Begin?

▲ XRP / ChatGPT-generated image

Market attention is intensifying amid analysis suggesting that XRP is preparing for a major breakout toward the $4 milestone, driven by a liquidity imbalance.

According to cryptocurrency media outlet NewsBTC on February 17 (local time), XRP Ledger developer “Bird” analyzed that XRP’s current liquidity structure has entered a state of liquidity imbalance favorable to an aggressive upward move. Bird explained that most of the liquidity previously resting below the current price has been cleared, reducing the likelihood of a sharp decline, while substantial liquidity is concentrated on the upper end near the $4 level.

It is important to note that markets tend to naturally gravitate toward liquidity zones where orders are heavily concentrated. Bird emphasized, “The market is naturally drawn to liquidity zones where the largest number of orders are clustered.” In the upper liquidity zone, a significant buildup of short positions and leveraged trades is present. If XRP’s price enters this range, a short squeeze could occur as short sellers are forced to buy back positions to cover losses. The strong buying pressure generated in this process is expected to trigger additional retail buying, accelerating the pace of price gains.

Market analyst Master of Crypto assessed that XRP has entered a critical decision zone as it tests the upper resistance line of a downtrend channel. He predicted that if XRP breaks above the $1.8 resistance level with strong trading volume and stabilizes above it, the likelihood of a rapid surge toward $2 is very high.

However, if XRP fails to break through the upper resistance, some observers suggest it could undergo a final correction toward the $1.4 area before attempting a full-fledged breakout. Master of Crypto stated, “XRP’s next move will depend entirely on how the price reacts at the $1.8 resistance level.” Currently trading near $1.5, XRP still holds upside potential of more than 180% toward the $4 target.

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