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▲ XRP / AI Generated Image
As XRP broke through its long-term box range and rebounded, short-position investors faced massive liquidation pressure. With the remaining distance to the max pain zone, formed just above $1.3, narrowing to around 20%, the possibility of an additional short squeeze emerged as a key market variable.
According to U.Today, a cryptocurrency specialized media outlet, on July 2 (local time), XRP broke out of its long-term stagnant range of $1.02 to $1.06, crushing bearish bets. As XRP prices moved sharply upwards, large leveraged short positions were forcibly liquidated, and over $634 million in margin positions were cleared across the entire cryptocurrency market in the last 24 hours.
According to CoinGlass data, approximately 73% of the total market losses were concentrated among short-position investors. In the XRP market, the bias was even stronger. Approximately 80.6% of XRP-related losses originated from investors with bearish bets.
Although the first wave of liquidations has passed, the max pain zone for large XRP sellers still remains at $1.30953, which is higher than the current price. Funds totaling $5.79 million are concentrated at this price level. As XRP rose to $1.0829, the distance to this zone narrowed to 20.93%, and the media explained that this trend has already triggered some defensive stop-loss orders at intermediate price levels.
Technically, the breakout of the key resistance level at $1.0525 was the starting point for this rally. However, with overbought indicators pointing to short-term overheating, the upward momentum was diagnosed as temporarily exhausted. The media analyzed that buying pressure is likely to take a breather, and XRP might see a slight retracement towards its previous resistance level of around $1.065.
The short-term key is whether $1.065 can be turned into a support level. If this zone holds, XRP could establish a mid-term upward foothold towards the key target zone of $1.30953. Conversely, if it fails to defend $1.065, this breakout is likely to be limited to a short-term overheating trend that occurred after short position liquidations.
[Article Key Summary]
-XRP broke through the $1.02 to $1.06 box range, triggering massive short position liquidations.
-The total cryptocurrency market liquidation volume exceeded $634 million in the last 24 hours, with approximately 80.6% of XRP losses concentrated among bearish-betting investors.
-Whether $1.065 can be converted into support is presented as a key criterion for further upside towards the $1.30953 max pain zone.
*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.*
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