to leave a comment.
▲ XRP/AI generated image ©
XRP (Ripple) broke through a downtrend line that had persisted for over a month, triggering a short squeeze (buying pressure generated to close or cover short positions) and recording a strong rally that outpaced the overall cryptocurrency market's growth rate. Ripple's monthly escrow volume management and accumulation by whale investors further bolstered the upward trend.
According to the cryptocurrency market data site CoinMarketCap on July 3 (local time), XRP showed a strong upward trend, rising 4.97% in 24 hours to $1.14. The market analyzed that the breakthrough of the downtrend line, which had lasted for over a month, and the $1.075-$1.10 resistance zone were the direct triggers for this rebound.
A massive short squeeze occurred during this price surge. According to CoinDesk, over 80% of the liquidated position losses during the price surge came from XRP short positions. Stop-loss buying by leveraged short investors led to a chain reaction, expanding the upward movement. Ali Martinez analyzed that the Supertrend indicator on the 4-hour chart showed a buy signal for the first time since mid-June. The market is also noting the possibility that a large short liquidation zone remaining above $1.11 could stimulate further gains.
On the supply and demand side, positive trends continued. During Ripple's monthly release of 1 billion XRP from escrow, approximately 70% of the total volume was re-locked into escrow, limiting new supply flowing into the actual market. TokenPost reported that this volume was absorbed by the market without price shock. Simultaneously, large outflows of XRP from exchanges were observed, suggesting accumulation by whale investors. The overall market's risk-on sentiment, with the total cryptocurrency market capitalization rising by 2.24%, also supported the upward trend.
In the short term, whether the $1.08-$1.10 range can be maintained as a support level is considered a key variable. If this range is stably held, further gains up to the $1.15-$1.18 resistance zone are possible, according to analysis. In particular, the Senate vote on the U.S. cryptocurrency market structure bill, the CLARITY Act, expected in late July or August, is drawing attention as a major variable that will impact the future regulatory environment and investor sentiment. Conversely, a drop below $1.08 would weaken the short-term uptrend, raising the possibility of retesting the $1.06 support level.
*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.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.