XRP Price News: XRP Eyes $1.80 as Short Squeeze Odds Rise

XRP (XRP) has jumped by 4% in the past 24 hours as oil prices retreated below $100 yesterday and market sentiment continues to improve.

In the past 7 days, this altcoin has gained nearly 7%, while other tokens like Bitcoin (BTC) and Ethereum (ETH) have booked stronger gains of 10% and 15%, respectively.

Trading volumes increased by nearly by 65% in the past day to nearly $3 billion, currently accounting for 3.5% of the token’s circulating market cap.

Nearly $1 Billion in Short Positions Were Liquidated in Just 3 Days

Short liquidations spiked to almost $500 million, signaling a potential short-squeeze in the making as top cryptos break past key resistances.

Including today’s numbers, data from CoinGlass shows that nearly $1 billion worth of short positions in the futures market have been blown up in the past 3 days, while that amount rises to nearly $1.5 billion in the past 7 days.

On April 10, XRP-linked exchange-traded funds (ETFs) received their largest single-day inflow since February, with $9 million being poured into these vehicles.

Paired with a significant improvement in market sentiment, this could be an early indication that the market is ready for a reversion to the mean, which would imply a potential move to $1.75 in the mid-term for XRP.

We have been saying for weeks that the odds that XRP has already hit a local bottom at $1.33 are particularly high. The token’s latest behavior confirms that assessment, although it is still too early to say if this would be the cycle’s ultimate floor.

XRP Bounces Off $1.33 Again

Heading to the daily chart, we can see that XRP has bounced multiple times off the $1.33 support area, and it is currently retesting a short-term resistance at $1.39.

This altcoin has been consolidating for months, and it seems highly likely that the market will take another try at the $1.50 supply zone to retest bears’ commitment.

If we break through that sell wall, the odds will favor a much stronger rally toward $1.75, meaning an upside potential of 26% in the near term.

The Relative Strength Index (RSI) just jumped above the 14-day moving average and past the mid-line, indicating that bullish momentum is accelerating.

All signs point to an ongoing recovery, but XRP still needs to clear the $1.50 hurdle to confirm a bullish outlook.

Buy Signal Pops Up at Key Support – Next Stop $1.50?

Moving down to the 4-hour chart, the $1.33 floor has been a key area for traders for the week. However, we have received some mixed signals from our system, indicating that selling pressure still exists at a certain level.

Yesterday, we got an encouraging buy signal right after XRP bounced off this key support. This confirms institutional participation in the move and raises the odds that XRP could be heading toward $1.50 in the near term.

A retreat to $1.35 would provide an attractive entry for a long position. This trade offers a 3.5x risk-reward ratio, but only if that pullback materializes.