Analyst STEPH IS CRYPTO has issued a warning to XRP holders amid changing trading dynamics. In a recent video on X, he analyzes liquidity and potential short-term fluctuations.
Short Positions Dominate
In his analysis, STEPH IS CRYPTO noted an imbalance in XRP's liquidity structure. The heatmap data shows a large concentration of short liquidity, indicating that many traders betting on a price drop are at risk. If XRP begins to rally, this could trigger significant short position liquidations.
Technical Indicators Support Bullish Case
XRP has gained 2.89% over the last 24 hours, indicating steady growth. The token now boasts a market capitalization of approximately $138.19 billion, reflecting growing investor confidence. Even a small upward move may lead to large-scale liquidations and a sharp breakout.
Regulatory Clarity Fuels Market Optimism
In the wake of recent news about Ripple and SEC dropping their appeals, the regulatory clarity achieved in 2023 could open new opportunities for XRP’s growth. The removal of legal barriers could increase buying interest, especially from institutional players, further complicating the situation for short sellers.
According to the analysis, XRP is approaching a critical threshold where potential short position liquidations could spur a rapid price increase. XRP holders and traders are advised to stay vigilant in the current market conditions.
