According to Santiment’s analysis, amidst recent turbulence in the cryptocurrency market, the XRP Ledger supported by Ripple Labs is expected to regain bullish momentum. Despite recent market declines, bearish activities persistently occur. XRP is paradoxically viewed as potential “rocket fuel” in response to price surges. Santiment emphasizes XRP, along with Cardano (ADA), is among the most heavily shorted digital assets. Patient bulls view this intense shorting positively, as liquidation of these positions could lead to price increases. The 0.9623 long-short ratio leans towards more bearish positions, reinforcing a bearish outlook. Weekly liquidation heatmaps show leverage concentrated near the $0.50 level.
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Following the launch of LayerZero (ZRO), Arbitrum network transaction fees hit a record high. Key support lies between $0.48 and $0.50, with resistance near $0.52. Volatility above these levels could trigger significant liquidation. Data from CryptoQuant reveals a significant increase in XRP’s open interest contracts, indicating growing investor expectations for price gains, market liquidity, and efficiency improvements. Market analysts are optimistic about XRP’s potential, forecasting a price increase to $2.71. Developments such as Ripple’s lawsuit with the SEC and integration of XRP Ledger with the Ethereum Virtual Machine (EVM) could also impact XRP’s long-term valuation. While XRP traded at $0.48 at the time of writing, experiencing a slight decline in the past 24 hours, current conditions suggest potential for a bullish reversal. The convergence of substantial bearish activity and high liquidation leverage sets the stage for potential short squeezes and subsequent price increases.
