XRP Faces Potential Short Squeeze with $3 Billion Liquidation Risk

XRP price has increased by 3%, reaching levels between $1.339 and $1.35 as market sentiment shows signs of recovery. This upward movement is linked to reports regarding ceasefire negotiations between the United States and Iran, which helped ease broader geopolitical tensions. However, analysts have identified massive potential liquidations totaling $3 billion, significantly raising the threat of a violent short squeeze. The price continues to challenge resistance near the $1.36 mark, while maintaining the $1.30 support level remains crucial for sustaining bullish momentum. Despite robust on-chain activity on the XRPL, thin market liquidity continues to pose risks of extreme volatility during sudden price swings. Traders are now focused on whether geopolitical optimism can offset the technical risks associated with the high concentration of bearish positions.