The XRP price is experiencing notable fluctuations as it approaches a pivotal support level at $2. This key zone has attracted attention due to heightened selling activity from short sellers. As long positions face liquidation, growing open interest indicates the possibility of an upcoming short squeeze, enhancing expectations for a potential comeback. Analysts speculate that a decisive drop below $2 could act as a catalyst for XRP to trigger a new upward momentum.
XRP Price Approaches Critical $2 Level for Potential Recovery
Recent analysis by CryptoExperts has provided insights into XRP’s performance, notably its approach to the $2 liquidity zone. Observations suggest a potential bullish trend reversal could emerge, paving the way for a significant price increase as market conditions stabilize.
As outlined in the expert’s technical chart, XRP’s descent into this important liquidity area was purposeful; it coincided with a notable cluster of buy orders near $2, emphasizing a key trading zone. This environment has concentrated trades, indicating that market actors have their sights set here.
During this market shift, CryptoExperts noted substantial liquidations of long positions. This surge, reflected on the liquidation analytics, confirms that many traders engaged in aggressive buying strategies were forced to exit as prices fell. The resultant selling pressure accelerated the movement toward the $2 liquidity target.
Concurrently, the Open Interest (OI) for XRP has been increasing. Unlike a decline that signals traders exiting the market, the rise in OI indicates that new positions are being established even amidst the current downturn.
This increase in OI amid a dip into a high-liquidity area serves as a cautionary indicator for short sellers. Should the price bounce back from this zone, the closure of short positions might occur rapidly, potentially resulting in a short squeeze. Such a scenario may catalyze a swift and explosive rally as buy pressure mounts and short positions are liquidated.
The significance of the $2 mark has shifted beyond a mere psychological level; it now symbolizes the intersection of liquidation events, confirming open interest, and heightened liquidity. A sharp descent below this threshold could clear out remaining weak hands and might set the stage for XRP’s price resurgence.
XRP’s Path Forward: Bold Predictions for Future Gains
While some analysts maintain a cautious approach regarding XRP’s short-term outlook, market figures like TokenGuru have proposed audacious forecasts, suggesting XRP could reach as high as $46 by late September 2025. This outlook hinges on XRP initiating a bullish trajectory as early as July, with several ambitious targets set for the coming months.
Once it surpasses current resistances, XRP is expected to target an initial benchmark of $12, representing a staggering 500% increase from a price of $2.18 at the time of this analysis. Following that, TokenGuru anticipates a midpoint of $24 before the altcoin potentially skyrockets toward the anticipated $46 high, which would translate to an incredible 2,500% surge from current valuations.
Image credit: Unsplash, charts provided by TradingView
