XRP Analysts Flag Short Squeeze Setup, Citing Liquidity Imbalance and Derivatives Sentiment

A recent analysis by Cryptoinsightuk suggests that XRP may be poised for a major short squeeze, driven by an imbalance in leverage positioning and liquidity.

According to the analyst, there is substantial upside liquidity above current levels, with around $300 million near $3.38 and another roughly $300 million near $3.60. This significant difference in liquidity between the downside and upside could eventually force XRP price higher.

The analysis also points to derivatives sentiment, noting that XRP has already experienced eight consecutive weeks of negative aggregated funding, with the current week potentially becoming a ninth if it were to close negative. This is comparable to only one other period, at the 2022 bear-market low.