Analysis of current market conditions indicates that the $3 level could serve as a trigger for liquidations of short positions in XRP, while long-term holders are realizing profits amid Ripple's new partnership.
Risk for Short Positions at $3
Market analyst CW has pointed out that if XRP rises to $3, many short positions might get liquidated. Liquidity heatmaps show significant concentration at this level, suggesting the potential for a forced liquidation wave. Currently, XRP is trading below this mark, fluctuating between $2.85 and $2.95. The $2.90-$2.95 zone has formed as short-term resistance, and a clean break above it could spark a liquidation wave.
Profit Taking by Long-Term Holders
Glassnode data indicates long-term holders have been locking in gains. Realized profits exceeded $2 billion during recent pullbacks, highlighting active distribution. This behavior is consistent with XRP's trends; for example, on July 24, profit-taking spiked to $375 million, resulting in a sharp price drop.
Technical Indicators and Ripple Update
Analyst Ali Martinez noted that the TD Sequential indicator has turned bullish on XRP’s hourly chart. Its latest readings suggest a possible short-term rebound. Additionally, Ripple Labs has confirmed a new agreement with Japanese financial group SBI Holdings for the distribution of the RLUSD stablecoin in Japan starting in Q1 2026.
Current market conditions and Ripple's new partnerships highlight the volatility of XRP, along with the opportunities and risks for traders ahead of potential price shifts.
