XRP Targets $1.42 After Major Long Liquidations Reset Market

TLDR:

• XRP liquidation heatmaps show that most major leveraged long positions have been cleared from the market.
• Reduced leverage exposure has created a cleaner market structure with fewer downside liquidity targets.
• MACD and RSI indicators are turning bullish as XRP forms higher lows on the 4-hour chart.
• XRP faces key resistance near $1.38, with a breakout potentially opening the path to $1.42.

XRP Price remains below recent highs, and the removal of leveraged positions and improving technical indicators have created a bullish landscape. This has prompted traders to reassess the asset’s near-term outlook.

XRP Price Recovery Benefits From Major Liquidation Reset

The XRP Price Recovery story extends beyond recent price action. One of the most notable developments has emerged from the derivatives market, where a large share of leveraged long positions accumulated throughout May has been eliminated.

Liquidation heatmaps show that many of the largest liquidity clusters beneath XRP have already been absorbed. These zones represented areas where overleveraged traders were vulnerable to forced liquidations if prices continued moving lower. As XRP gradually declined during the month, those positions were systematically removed from the market.

This process has changed the broader market structure. Earlier in May, repeated attempts to catch a bottom created layers of leveraged exposure underneath the price.

Every bounce attracted fresh longs, while each pullback increased liquidation risks. Instead of triggering a sustainable rally, XRP continued drifting lower, consuming those liquidity pockets along the way.

As a result, the market now appears significantly cleaner. The concentration of leverage that previously acted as a downside magnet has largely disappeared.

Many traders view such resets as an important stage in establishing healthier market conditions because excessive positioning often prevents sustained directional moves.

Technical Indicators Signal Improving Momentum

Alongside the liquidation reset, XRP’s technical structure has started showing signs of stabilization. The strongest indication came from the rebound that followed the May 28 decline toward $1.28, where buyers quickly stepped in after oversold conditions emerged.

Since then, XRP has recovered above the $1.34 level while forming a sequence of higher lows on the four-hour chart.

Although the broader trend remains corrective, this pattern suggests sellers are losing some control over short-term price action.

Source: CryptoRank

Momentum indicators have also strengthened. The MACD recently produced a bullish crossover, with the MACD line moving above the signal line. At the same time, the histogram continues expanding into positive territory, reflecting growing buying pressure.

The Relative Strength Index offers additional support for the recovery narrative. RSI has moved comfortably above the neutral 50 level and is approaching 57.

Importantly, the indicator remains below overbought territory, leaving room for further upside if demand continues improving.

Trading volume has also increased, confirming that price gains are supported by genuine market interest rather than temporary volatility.

Attention now turns to the $1.36-$1.38 resistance range, which previously served as support before the latest decline.

A successful move above that zone could strengthen the recovery case. However, XRP still trades below the May high near $1.55, leaving the broader corrective structure intact for now.

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