Right now, XRP is showing signs of a possible hidden bullish signal. This indication is based on the underlying market dynamics, notably a surge in the amount of liquidated XRP short orders, rather than price movements or patterns on the chart.
A liquidity squeeze favouring bulls is likely as bears become trapped in a precarious situation following even small price increases, perhaps creating the conditions for an increase in volatility.
Bears have been rushing to cover bets in the market, which suggests that the market may be undervaluing the underlying bullish mood among XRP investors. As the price of XRP teeters on significant support and resistance levels shown in the above price chart, this situation becomes quite intriguing.
According to our analysis of the chart, XRP has been attempting to break through a resistance level that is located at about $0.5779, with a significant support base developing at $0.5386. If the price breaks through this resistance level, it may see an accelerated upward trajectory since short sellers are being squeezed.
A sharp price gain might be fueled by the rise in purchase orders required to cover short positions, which could drive the price to test the next resistance level at $0.60.
Given that the RSI is circling 41.66, indicating that XRP is neither overbought nor oversold, and the MACD may be about to make a bullish crossing, the chart suggests that a positive situation is likely. There is space for upside movement in this neutral RSI level without any urgent overbought issues.
Based on the liquidation data, the growth forecast for XRP suggests a ripple effect, in which a little price gain sets off a series of short covers that drive up the price.
