Ripple (XRP) Price Targets $0.65 Resistance as Bulls Eye Short Squeeze Potential—Here's the Outlook

Cryptoinsightuk, a prominent analyst on X (formerly known as Twitter), updated his 27.5k followers on his thoughts on XRP's short-term price action

.65 Resistance as Bulls Eye Short Squeeze Potential—Here's the Outlook" >

A prominent crypto analyst known as Cryptoinsightuk on X (NYSE:TWTR) (formerly known as Twitter) recently shared his thoughts on XRP’s short-term price action with his 27.5k followers.

According to the analyst, XRP has been consolidating within a crucial range, and a breakout could lead to a potential rally. He highlights key resistance levels, open interest trends, and the potential for a short squeeze as important factors to watch.

As XRP’s price approaches the lower bound of its current range, investors are anticipating a breakout, and if the bulls maintain their momentum, it could trigger further upside movement.

Breaking Down XRP’s Key Levels

A glance at Cryptoinsightuk’s XRP chart reveals that its price is hovering around the $0.6291 level, just shy of the first key resistance at $0.63. However, XRP’s price has already encountered resistance at $0.6537 (a 78.6% Fibonacci retracement), suggesting that more buying force may be needed to penetrate through.

On the other hand, the price action has formed a double-bottom pattern near $0.6130, hinting at a potential bullish reversal.

Moreover, the spot volume on the XRP chart also seems to be increasing during upward price movements, and this may need to continue if XRP’s price is to push through the resistance levels.

The next target for the bulls, according to Cryptoinsightuk, would be $0.6537, where the price could face a stronger challenge.

Open Interest and Potential Short Squeeze

The open interest (OI) metric is another key indicator that Cryptoinsightuk is keeping an eye on. A noticeable increase in OI, followed by a slight pullback, suggests some profit-taking or an exit of long positions.

Furthermore, the funding rate is showing a decrease, which could point to short positions entering the market. If XRP continues its upward movement, these shorts could be forced to cover, creating a short-squeeze scenario.

A successful breakout above $0.63 could trigger this squeeze, pushing XRP’s price toward $0.6537 and potentially beyond. The combination of a double bottom, a bullish engulfing candle, and falling funding rates adds weight to this possibility.

Volume is often a reliable indicator of the strength behind a move, and Cryptoinsightuk has pointed out that they are closely watching spot volume during XRP’s price pushes to the upside. The volume needs to remain strong for any sustained rally.

So far, spot volume has been increasing on upward price movements, reaching over 8.065M. If this volume can be maintained or increased, XRP’s chances of breaking through key resistance levels will be significantly higher.

Monitoring Bitcoin’s Impact

The larger cryptocurrency market, specifically Bitcoin (BTC), is a factor in XRP’s price movement. According to Cryptoinsightuk, BTC is approaching a turning point, and its movement may have an impact on XRP’s price in the short course.

If BTC holds its ground or moves higher, it could provide additional support for XRP’s push-through resistance. However, if BTC faces downward pressure, it could weigh on XRP’s performance.

The platform’s outlook remains neutral as they wait for more price action to develop, particularly at key resistance levels. Whether XRP can break through these levels and continue its upward momentum will depend on several factors, including volume, open interest, and market sentiment.

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