Is A New XRP Price Record Imminent? Analyst Forecast Colossal Short Squeeze Ahead

A important brief squeeze could also be on the horizon for XRP traders, doubtlessly serving as the primary catalyst for a rally that would push costs past the all-time high of $3.90. 

Market analyst Bird made these predictions in a latest submit on social media platform X (previously Twitter), highlighting key observations from his evaluation.

Key Liquidity Zones For XRP

Bird shared a chart that illustrates the place leveraged positions—each lengthy and brief—are concentrated out there. He defined that the coloured bands on the chart point out ranges of liquidity, the place the potential for pressured shopping for or promoting may happen as a consequence of stop-loss orders and liquidations. 

The evaluation of the altcoin’s every day chart heatmap categorizes liquidity into two distinct zones: pink, signifying deep liquidity, and lighter colours indicating much less liquidity.

From his observations, Bird famous that value actions away from low liquidity areas are likely to happen quickly. He defined this course of: when costs strategy zones with important stop-loss clusters, they typically set off massive sell-offs, wiping out lengthy positions. 

Price Targets $4.20

Following these actions, the worth usually rotates again towards shorts, resulting in extra liquidation occasions. Bird identified that on Sunday, quite a lot of lengthy XRP positions have been liquidated. 

Now, he sees a dense liquidity pocket forming across the $4.20 mark, primarily from brief XRP positions. This scenario incentivizes market makers to drive costs towards this liquidity to shut out these trades, slightly than transferring away from it. 

As a end result, Bird expressed confidence that the present XRP value rally is much from over. He believes {that a} new all-time high is imminent, because the potential for a considerable brief squeeze looms. 

At the time of writing, the fifth-largest cryptocurrency available on the market was buying and selling at $2, having briefly dropped to $1.84 earlier on Monday. 

Featured picture from DALL-E, chart from TradingView.com