XRP Trapped at $3: Next Move Could Trigger Billions in Liquidations

XRP price hasn’t made big moves in the past 24 hours, but its 7-day gains of 4.2% have kept traders alert. Currently, the XRP price holds at $3, a key psychological and technical level.

The token has gained over 400% in the past year, but unlike coins with clear directional trends, XRP remains caught in a complex trading structure.

This structure isn’t random, it resembles a deliberate trap that has repeatedly squeezed both bulls and bears. Unless XRP can break above its breakout key levels, traders may continue to see volatile fakeouts.

Read Also: Dogecoin and XRP Dip as Crypto Market Sees Over $500 Million in Liquidations

XRP Wedge Structure Analysis: The Trap Zone

On the 4-hour chart, XRP is consolidating inside a narrowing wedge. The trading zone between $2.94 and $3.35 has become the battleground for bulls and bears.

1. Sellers step in heavily between $3.13–$3.35.

2. Buyers defend the $2.94–$2.97 zone.

3. Both sides get faked out as XRP repeatedly rejects breakouts.

Recent attempts to move above $3.35 failed quickly, while bounces near $2.94 also lacked strength. This wedge pattern ensures that neither side dominates, leaving both long and short traders frustrated.

XRP Short Squeeze Potential: $1.84 Billion in Shorts on the Line

Source: TradingView

Liquidation map shows a major imbalance in positions:

1. Over $1.84 billion in shorts are stacked between $3.04 and $3.42.

2. Long liquidations remain lighter, under $800 million.

This means if XRP can rally past $3.13 with conviction, it could trigger a short squeeze. Such a move would wipe out high-leverage shorts and accelerate upside momentum.

Currently, XRP is hovering at $3.04, right where the short cluster begins. A breakout above $3.13 could unleash aggressive liquidation pressure, while failure to hold above $2.94 risks a deeper drop to $2.65.

Read Also: What the SEC’s Delay on 5 Spot XRP ETFs Means for the Future of Crypto ETFs

XRP Whales Accumulating Despite Risks

On-chain data from TapTools confirms that XRP whales are accumulating, with whale activity at a multi-month high. This accumulation signals confidence in the long-term case for XRP, even though short-term price action is dominated by the wedge structure.

Analyst EGRAG Crypto emphasizes that XRP must flip $3.13 into solid support to resume its bullish trajectory. A breakdown below $2.90, however, could trigger panic selling and test lower support.

Headwinds: ETF Delays & Security Concerns

While technicals show squeeze potential, fundamentals bring caution. The SEC has delayed multiple XRP ETF applications until October, which has dampened institutional appetite.

Additionally, a recent blockchain security audit ranked XRP Ledger last among 15 major blockchains, raising questions about its infrastructure strength.

Institutional investors, already wary of regulatory hurdles, may hesitate to add XRP exposure until these issues are addressed.

Long-Term Outlook

Source: TradingView

Despite near-term uncertainty, XRP remains up 425% since August 2024, and the end of Ripple’s SEC lawsuit has revived long-term optimism.

If ETF approvals eventually come through, coupled with whale accumulation, XRP could see fresh inflows that support a breakout beyond current resistance.

For now, traders must watch the wedge’s key levels:

1. Break above $3.35 = bullish continuation.

2. Break below $2.94 = deeper correction to $2.65 possible.

Until then, XRP remains a patience game.

Read Also: XRP ETF Poised to Outshine Ethereum as Big Players Eye Massive Gains

Conclusion

XRP is trapped in a wedge, but the setup leans toward the upside thanks to whale accumulation and a massive short liquidation wall.

Traders should keep a close eye on $3.13 and $2.94, the make-or-break levels for the next big move.

Stay ahead of XRP market shifts and other crypto updates by following the Bitrue blog.

FAQ

Why is XRP stuck around $3?

Because it’s trading inside a wedge structure, with sellers dominating above $3.13 and buyers defending $2.94, creating repeated fakeouts.

What is the XRP short squeeze potential?

If XRP breaks above $3.13, it could trigger liquidations of over $1.84 billion in shorts, fueling a rapid upside move.

Are whales still buying XRP?

Yes. Whale accumulation is at multi-month highs, signaling long-term confidence despite short-term volatility.

What happens if XRP drops below $2.94?

A clean break below $2.94 could push XRP toward $2.65, trapping bulls and resetting short-term momentum.

Could an XRP ETF approval push the price higher?

Yes. ETF approval would likely attract institutional inflows and add legitimacy to XRP, potentially driving the next major rally.