XRP Nears Breakout Zone as Short Liquidations Stack Up Above $1.10
XRP may be close to a sharp move. For months, the token has stayed below a descending trendline as its trading range narrowed. Now a large cluster of short liquidations is stacked above $1.10. Why does that matter? Because a clean break could unleash forced buying and produce the kind of sudden short squeeze already seen in altcoins with comparable setups. It could move fast.
XRP traded near $1.07 on Thursday, caught between support and resistance. The broader trend is still weak. Full stop. Yet traders are zeroing in on $1.10 because a break above it could improve sentiment and give buyers room to push higher. Most breakout commentary focuses on the upside. That is only half the setup: if nearby support collapses first, XRP could fall again, as altcoin traders have seen plenty of times.
On the weekly chart, XRP remains inside a descending triangle near $1.07. Lower highs have defined the move since the token retreated from its yearly peak, while buyers have defended the $1.04-$1.05 area and kept XRP consolidating. Resistance sits between $1.10 and $1.12, where the falling trendline intersects a former support zone that now serves as a ceiling. A weekly close above that range would interrupt the run of lower highs and could put $1.20 within reach. Below $1.04, however, the $0.93 support area comes straight back into play. My take: those four levels—$1.04, $1.10, $1.12, and $1.20—matter more than the noise between them.
XRP’s momentum indicators offer a mixed picture. The Relative Strength Index (RSI) is near 33. Sellers still control the market, though not as firmly as they did during the earlier declines. Chaikin Money Flow (CMF) remains below zero, meaning capital continues to leave even while price settles. I’ll be honest: I would stay cautious here. Easing bearish momentum sounds encouraging, but neither indicator confirms a durable reversal. The chart is undecided.
Derivatives data explains why a break above $1.10 could turn chaotic. CoinGlass’ liquidation heatmap places a large cluster of short liquidations immediately beyond the $1.10-$1.12 resistance area. If buyers push XRP through that two-cent zone, short sellers may be forced to buy the token to close their positions. The resulting demand could carry price rapidly toward the next resistance level. Is that comparison overdramatic? Not really—crypto squeezes can unfold at a ridiculous speed. The mechanism resembles the GameStop (GME) squeeze in traditional markets, although crypto often compresses the action into a much shorter period.
Long liquidations are clustered near $1.04 and below, so leverage could amplify a move in either direction. A support break may trigger forced selling and pull XRP toward $0.93. Traders appear to expect heavier volatility around these prices. Open Interest (OI), meanwhile, has stabilized after dropping sharply from its previous highs. It has edged upward as traders return, although it remains well below its earlier peak. That distinction matters.
If price and OI rise together for a sustained period, fresh money is probably entering the trade, giving a bullish breakout more credibility. A rally with little OI growth deserves more skepticism. Counter to the usual “price is all that matters” advice, the move could simply be short covering—and once that buying dries up, the rally may be exposed. I would not trust the candle alone.
The heatmap and OI data make $1.10-$1.12 the decisive area for XRP’s next move. Other altcoins have rallied quickly when crowded short positions collided with a break in chart resistance. Solana (SOL), for example, rose from $100 to $120 after clearing resistance earlier this year, with a similar short liquidation cluster helping the move. XRP is not Solana, and the setups are not identical. Still, that $20 SOL move shows exactly why traders are watching XRP’s narrow two-cent resistance band so closely.
What this means
XRP sits between two nearby liquidation zones, either of which could accelerate the next move. A firm break above $1.10 may force short sellers to repurchase their positions and add momentum to a rally. Yes, that sounds bullish—but the same leverage could steepen a decline if $1.04 fails. Open Interest has stopped falling and begun to recover, suggesting leveraged traders are returning. Are they positioned correctly? We do not know yet. Personally, I would treat the OI recovery as a volatility signal before calling it a directional one.
The price range to watch is $1.10-$1.12. A weekly close above it carries more weight if volume and OI also rise. XRP could then move toward $1.20 and later $1.45. But skip the victory lap if the token cannot hold $1.04. That failure would seriously damage the bullish case, putting $0.93 and perhaps $0.75 next on the downside. My read is simple: the coming days should show whether the short liquidation cluster fuels a rally or hands sellers another opening.