Ripple (XRP) $2.4attracted many investors with its 500% rise in the last quarter of 2024. Due to the impact of the parabolic rally, many traders are selling the token, aiming to profit from the decline. However, data shows that approximately $80 million in short positions will be liquidated if XRP breaks a critical resistance level.
Liquidation Risk of Short Positions
Ripple (XRP) is at a critical point where it exhibits consolidation behavior on the weekly and monthly charts. Currently, the token is trading at $2,335, showing huge user interest with a market cap of $134 billion. According to CoinGlass data, while this interest leads to high speculation, short positions will be forcibly closed if the $2.40 resistance is exceeded.
MAXPAIN analyst stated that XRP is stuck in the symmetrical triangle formation and preparations are being made for a breakout:
MAXPAIN: XRP price is stuck in the symmetrical triangle, preparing for the exit. BBW is approaching the local low, the breakout is near. However, the symmetrical triangle creates directional uncertainty.
If the price rises above $2.40, approximately $80 million in short positions will be liquidated. Often such closes can create buying pressure, causing the price to rise rapidly.
Alternative Scenarios and Support Levels
The four-hour RSI indicator is firming up at 50, indicating a downtrend. If a move above this level is rejected, the downtrend may strengthen and the price is expected to decline to support levels such as $2.07, $2.00, and $1.90. CoinGape’s previous predictions suggest that the price may drop to $1.5 and then expect a big rally.
Following the Ripple news, XRP will face liquidation of $80 million in short positions if it breaks the $2.40 resistance level. While this could trigger a strong uptrend, technical indicators also show that fluctuations in the low-high levels may continue.
The future of XRP will depend on investors carefully following market movements. Which direction the price will move remains uncertain, depending on technical analysis and market dynamics.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
