Usman Salis
XRP (XRP) could experience a significant squeeze against Bitcoin (BTC), following previous short-term price spikes. Here's what could be ahead for the XRP/BTC pair.
XRP/BTC Pair Recovery
XRP could soon be facing a "huge squeeze" against Bitcoin (BTC), according to a top trader's analysis. Currently, the XRP/BTC pair stands at 0.00000945, as per data from TradingView. Despite XRP's decline of 35.05% since the start of 2024, it has managed to recover by 27% since June, hinting at the potential for a significant move.
The XRP/BTC trading pair has been volatile this year, with a sharp decline of over 35%. However, XRP's rally since June has caught the attention of market analysts. Many speculate that a squeeze—an intense upward move caused by short bets getting liquidated—could be in the making. These market dynamics might result in XRP outperforming Bitcoin in the near future.
Historically, XRP has shown the ability to surge after significant legal victories. In August, the final ruling in the Ripple versus SEC case resulted in a short-term squeeze for XRP. While this resulted in a temporary price jump, XRP struggled to maintain the momentum beyond that. In 2022, a similar event occurred when the court ruled secondary XRP sales were not securities, yet the spike was again short-lived.
Squeeze Conditions for XRP
The term "squeeze" refers to a market scenario where an asset experiences a sharp upward movement due to a large number of traders holding short positions being forced to close their positions. XRP might soon witness another squeeze if it continues to recover while a substantial number of traders bet against its performance.
Traders are closely monitoring XRP's price movements, particularly in relation to Bitcoin. While past squeezes have led to short-lived gains, the current market sentiment indicates that XRP could once again outperform BTC in the short term. With a price of 0.00000945 against Bitcoin, XRP could be setting the stage for its next big move.
Conclusion
XRP's potential for a significant squeeze against Bitcoin is becoming a key focus for traders, especially as the XRP/BTC pair recovers from its recent declines. While previous squeezes have resulted in short-term gains, the current market setup suggests that XRP could be primed for another upward move. However, as with any speculative scenario, traders will need to closely monitor market dynamics to capitalize on any potential price shifts.
Usman Salis
