Against the backdrop of recent turbulence in the crypto market, the XRP Ledger, supported by Ripple Labs, is ready to regain its bullish momentum, according to Santiment analysis.
Despite recent market downturns, the significant short interest activity against XRP is paradoxically seen as potential “rocket fuel” for price jumps. Santiment emphasizes that XRP, along with Cardano (ADA), is among the most heavily shorted digital assets. This intense shorting is viewed positively by patient bulls, as the liquidation of these positions could lead to price increases.
The long/short position ratio of 0.9623 leans towards more short positions, which strengthens the bearish outlook. The one-week liquidation heat map shows concentrated leverage around the $0.50 level.
Key support levels are identified between $0.48 and $0.50, while resistance is marked near $0.52. Movements beyond these levels could trigger significant liquidations.
Data from CryptoQuant shows a significant increase in open interest (OI) for XRP, implying growing investor expectations for price increases and increasing market liquidity and efficiency.
Market analysts are optimistic about the potential of XRP, with forecasts suggesting a climb to $2.71. Developments such as Ripple’s lawsuit against the SEC and the integration of the XRP Ledger with the Ethereum Virtual Machine (EVM) could also affect the long-term assessment of XRP.
Although at the time of writing the article, XRP is trading at around $0.48 with a slight decline in the past 24 hours, the current situation shows potential for a bullish reversal. The combination of significant short interest activity and high liquidation leverage creates conditions for a potential short squeeze and subsequent price increase.