XRP (XRP) Might Be Gearing up for a Significant Squeeze Against Bitcoin (BTC)

The cryptocurrency linked to Ripple, might be gearing up for a significant squeeze against Bitcoin (BTC). Currently, the XRP/BTC pair trades at 0.00000968 BTC

Cryptocurrency XRP, linked to Ripple, might be setting the stage for a substantial squeeze against Bitcoin (BTC). At present, the XRP/BTC pair trades at 0.00000968 BTC, reflecting a 34.5% decline since the year began. Nevertheless, it has rebounded with a 27% gain since June.

In an X post, crypto analyst Crypto Michael brought attention to a historical pattern concerning the XRP squeeze. Following Judge Analisa Torres' final judgment in the SEC vs. Ripple case in August, XRP experienced a brief squeeze.

A squeeze occurs when an asset experiences a rapid price increase due to a large volume of short positions. Given XRP's current performance and the market conditions, a similar squeeze could happen again, influenced by market dynamics and investor sentiment.

However, this bullish momentum was not sustained, which is reminiscent of last year's scenario where the court's acknowledgment of secondary XRP sales as non-securities led to a brief price surge but had no lasting impact.

On the other hand, the XRP Ledger ecosystem is facing some challenges. According to XPMarket co-founder Artur Kirjakulov, it has hit a new market cap low, the lowest since January 2022. This decline suggests that projects and developers are moving from XRP to other blockchain platforms. As a result, the ecosystem may struggle with reduced innovation and investor confidence, missing out on trends like DeFi and meme coins.

Despite these setbacks, XRP holds 7th place by market cap at $29.6 billion. It's showing positive signs with higher lows within an ascending channel, reflecting optimism and steady buying interest. However, it's still below key EMAs (50, 100, and 200), needing more momentum to push through resistance.

If XRP can stay within the channel, it might reclaim $0.55 and test higher resistances at $0.60 or more. On the flip side, if XRP breaks below support could see it dip back to earlier lows around $0.50. XRP’s future will depend on its ability to regain momentum and seize new opportunities in the blockchain space.

The above is the detailed content of XRP (XRP) Might Be Gearing up for a Significant Squeeze Against Bitcoin (BTC). For more information, please follow other related articles on the PHP Chinese website!