"Shorts are trapped"...XRP $7 scenario, has it really begun?

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An analysis suggesting that short-sellers are trapped in the Bitcoin and XRP (Ripple) markets is causing a surge scenario to re-emerge.

According to the cryptocurrency media outlet Bitcoinist on April 25 (local time), crypto analyst RWA Investor claimed that XRP and Bitcoin's price movements are nearly identical, and bearish bettors have simultaneously fallen into a 'trap'. He analyzed that XRP is highly likely to soon break through the resistance zone of $1.50-$1.60.

If this resistance level breaks, XRP is expected to quickly rise to the $2-$3 range. However, it is predicted that after a 'pump and dump' pattern with a significant correction following the initial rise, a third upward wave will officially begin. He emphasized that a large-scale short squeeze (buying pressure to liquidate short positions) would occur during this process, potentially leading to a final rise to the $7 range.

Changes in the macroeconomic environment were identified as catalysts for the rise. In particular, it was analyzed that if the Federal Reserve's interest rate cuts and quantitative easing (QE) begin, liquidity would flow into the market, triggering a strong bull run. He explained that QE is a key variable in the market after the end of the tightening cycle.

In the short term, technical resistance levels are key variables. Another analyst, CashTrades, analyzed that XRP has further upside potential to the $1.50-$1.53 range. However, he added that this scenario is valid only if the $1.39 support level is maintained.

Ultimately, XRP's direction is highly likely to be determined in conjunction with Bitcoin's trend. As Bitcoin tests the $79,000 resistance zone, XRP's ability to break through its key resistance levels will also be simultaneously put to the test.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*