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XRP Price Prediction: 20% Gain Awaits if XRP Stays Above This Support Area
XRP (XRP) has outperformed all other crypto assets in the top 5 with an impressive 50% gain in just 7 days after the U.S. Securities and Exchange Commission (SEC) released a new regulatory framework for the industry.
Moreover, Ripple was one of the companies invited to the White House for President Donald Trump’s crypto summit, a gathering where the head of state affirmed his commitment to get the Clarity Act passed this year.
Trading volumes for XRP have jumped to more $6 billion in the past 24 hours alone after spending months in the freezer. This figure accounts for over 6% of the asset’s circulating market cap, as five consecutive days of gains pulled off a massive short squeeze.
XRP Liquidations Spike to $100M After a 5-Day Rally
With more than $100 million worth of XRP shorts being liquidated in the past five days alone, this qualifies as one of the most dramatic bloodbaths for bears in the token’s history.
The last time we saw liquidations of this magnitude was October 10, back when a flash crash swept the crypto market into its latest bearish cycle. Volatility was quite high at that point, and the market flushed out excessively leveraged shorts as it also evaporated billions in long positions.
Same as it happened back then, these cascade liquidations could have marked the definite end of this bear market, as we had been predicting for months.
Exchange-traded funds (ETFs) linked to XRP pulled in nearly $40 million in net inflows last week and have successfully broken a 2-month downtrend.
Meanwhile, market sentiment shifted dramatically as well, as the Crypto Fear and Greed Index rose from Neutral territory at around 36 to 79 at the time of writing,nearing “Extreme Greed” territory for the first time since December 2024.
This sudden shift is also the result of a dovish policy enacted by the U.S. Treasury Department that involved doubling its allocation for treasury buybacks starting in September.
Market conditions are clearly changing and risky assets like cryptocurrencies seem ready to make a strong comeback.
XRP Could Pull Back to $1.35, Giving Late Buyers a Chance to Get In
Turning to the daily chart, the price action surpassedour previous target for XRP at $1.32 and broke past the 200-day exponential moving average (EMA) like butter, reflecting strong buying pressure.
Meanwhile, open interest in XRP futures jumped to $3.60 billion as a result of this move, indicating that traders are positioning for a sustained uptrend by opening long positions.
The last time that XRP traded at $1.50, open interest was much lower as it stood at around $2.60 billion. Hence, the market’s reaction seems to this latest move seems to be quite positive, and could set the stage for the continuation of this rally in the next few days.
Source: finance.yahoo.com