XRP on a Knife’s Edge as Whales Pile In

XRP Poised for Upside as Market Shorts Crowd and Whales Position

Market analyst Xaif Crypto notes that XRP could be gearing for an upside, as whales strategically accumulate ahead of a potential market shift. Despite short-term pressures, key indicators point to a possible rebound for the digital asset.

Data from CoinCodex shows XRP trading at $1.97, just below the key psychological level of $2. While this represents a resistance point, market signals indicate that the downside may be limited, and a positive breakout could be on the horizon.

Funding rates, signaling the balance between longs and shorts, are currently negative at -0.00323, reflecting a short-heavy market. While such conditions usually favor sellers, Xaif Crypto suggests this isn’t outright bearish for XRP. Instead, the data points to a compression phase, where crowded shorts could fuel a sharp reversal once buying pressure emerges.

On the other hand, both the 30- and 50-day SMAs are trending downward, reflecting short-term pressure and cautious sentiment. Yet, markets rarely move straight, XRP’s current one-sided trend may trigger a counter-move. Historically, such setups often spark upside surges as short positions are covered, generating strong buying momentum.

Therefore, XRP should be given a keen eye around the $2 level because breaking this key psychological barrier could spark renewed buying from both retail and institutional players, accelerating a potential recovery. Whale activity suggests growing confidence in a near-term rebound.

“The market often snaps back when leaning too heavily to one side,” Xaif Crypto observes. “In XRP’s case, the probability of an upside release appears stronger than a downside breakdown, despite recent bearish signals.”

What next? Well, XRP may face short-term headwinds, but crowded shorts, compression dynamics, and key psychological levels indicate potential for a strong upside breakout. Therefore, monitoring both technical signals and market sentiment closely is of the essence with the coming weeks expected to define XRP’s near-term trajectory.

Conclusion

XRP’s market setup, with crowded shorts, declining SMAs, and key whale activity, points to a potential breakout. Despite short-term pressure, compression dynamics and the $2 psychological level signal a reversal could be near.