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<div class="finbold">
 <p class="paragraph">The cryptocurrency market started a bull rally on February 7, led by Bitcoin (BTC). However, XRP is lagging behind, maintaining a relevant volume of bearish short positions, creating short-squeeze opportunities for next week or sooner.</p>
 <p class="paragraph">A <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> happens when <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a>-sellers are liquidated, facing a sudden price surge during trend reversals. These liquidations force the repurchase of the <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a>ed cryptocurrency, driving the price even higher, triggering further liquidations, and potentially making it skyrocket.</p>
 <p class="paragraph">In this context, Finbold gathered data from <em>CoinGlass</em> about the crypto derivatives market on February 9. In particular, we spotted short squeeze potential on XRP in the monthly time frame.</p>
 <h2 class="wp-block-heading" id="h-short-squeeze-alert-for-xrp-next-week"><strong>Short squeeze alert for XRP next week</strong></h2>
 <p class="paragraph">XRP has heavy liquidity accumulation at the $6 price level. More specifically, there are $8,680 in <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> liquidations at $6.01, making it an appealing target for market makers.</p>
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 <p class="paragraph">Additionally, XRP has many smaller liquidity pools all the way upwards before reaching these higher levels. For example, there is a relevant concentration of <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> positions between current prices and $0.56. These will likely suffer a <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a> <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>, possibly triggering a larger movement.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="545" src="https://cdn.thebittimes.com/images/2024/02/09/bc7d216071842b153f9d95a88ac6bb57.webp" alt class="wp-image-154116" srcset="https://cdn.thebittimes.com/images/2024/02/09/bc7d216071842b153f9d95a88ac6bb57.webp 1024w, https://cdn.thebittimes.com/images/2024/02/09/bc7d216071842b153f9d95a88ac6bb57.webp 300w, https://cdn.thebittimes.com/images/2024/02/09/bc7d216071842b153f9d95a88ac6bb57.webp 768w, https://cdn.thebittimes.com/images/2024/02/09/bc7d216071842b153f9d95a88ac6bb57.webp 1536w, https://cdn.thebittimes.com/images/2024/02/09/bc7d216071842b153f9d95a88ac6bb57.webp 2040w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   XRP 1-month liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Interestingly, XRP is trading at $0.52 by press time, up 1.73% in the last 24 hours. A short squeeze to the largest liquidity pool would result in over 15% gains for the token. In the meantime, traders have opened over $388 million in short positions since yesterday, accruing 51.19% of the total daily volume.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="90" src="https://cdn.thebittimes.com/images/2024/02/09/47d449ed24eb3cb1590df5cbf06bb4ea.webp" alt class="wp-image-154118" srcset="https://cdn.thebittimes.com/images/2024/02/09/47d449ed24eb3cb1590df5cbf06bb4ea.webp 1024w, https://cdn.thebittimes.com/images/2024/02/09/47d449ed24eb3cb1590df5cbf06bb4ea.webp 300w, https://cdn.thebittimes.com/images/2024/02/09/47d449ed24eb3cb1590df5cbf06bb4ea.webp 768w, https://cdn.thebittimes.com/images/2024/02/09/47d449ed24eb3cb1590df5cbf06bb4ea.webp 1536w, https://cdn.thebittimes.com/images/2024/02/09/47d449ed24eb3cb1590df5cbf06bb4ea.webp 1986w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   XRP open interest and derivatives market data. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Notably, XRP shows a strong buy signal according to a Relative Strength Index (RSI) overbought status.</p>
 <p class="paragraph">Nevertheless, investors must consider the possible reasons behind this cryptocurrency lagging for a surge or having <a rel="noopener noreferrer nofollow" title="short" href="https://thebittimes.com/tag/short.html">short</a>-sellers interest.</p>
 <p class="paragraph">Moreover, the crypto landscape changes fast and daily, made of highly volatile assets. Thus, investors must trade cautiously, following the trends and adapting to each new development.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
 <p class="paragraph"></p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/huge-xrp-short-squeeze-on-the-horizon-tbt79382.html">https://thebittimes.com/huge-xrp-short-squeeze-on-the-horizon-tbt79382.html</a></p>

Huge XRP short squeeze on the horizon

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