XRP Price Holds $3: Will a Short Squeeze Force a Breakout?

Key Insights:

• XRP price is stuck inside a wedge between $2.94 and $3.35, with repeated fakeouts catching both long and short traders.
• Over $1.84 billion in short liquidations are stacked above $3.04, making any breakout above $3.13 a potential squeeze trigger.
• Whales continue to accumulate XRP, but structure still rules; no clean breakout yet.

XRP price hasn’t moved much in the last 24 hours, but its 7-day gains of 4.2% are raising eyebrows. The token is still holding the $3 support, just barely. But this bounce is part of a repeating structure that’s been playing out since last week. And this structure isn’t random. It’s been trapping both bulls and bears.

XRP is up over 400% in the past year. But unlike other coins riding clear trends, XRP’s current action looks like a deliberate squeeze zone. And unless it breaks above two key levels, that pattern might continue.

XRP Is Still Stuck Inside a Trap Zone

On the 4-hour chart, XRP is moving inside a narrowing wedge. The range between $2.94 and $3.35 has been the key battleground.

Price has tested both ends of this zone multiple times, and each time it fakes out, it comes back in; no confirmation, just confusion.

The red arrow marks the last breakout attempt above $3.35; it failed fast. The green arrow shows the most recent bounce from $2.94; but even that didn’t break cleanly higher.

These levels are not just random resistance or support. They’re part of the wedge structure that’s been forcing both bulls and bears to exit early.

The pattern here is clear: sellers step in hard near $3.13–$3.35. Buyers defend $2.94–$2.97. But neither side is strong enough to close the final price for the traders. That’s how both long and short trades get wiped; over and over.

Liquidation Map Shows Room for a Short Squeeze

The liquidation map on Bitget shows something critical: over $1.84 billion in short positions are stacked between $3.04 and $3.42. That’s a heavy short wall. It means if price moves above $3.05–$3.15 with strength, it could trigger a squeeze, one that wipes out high-leverage shorts fast.

By contrast, the long liquidation side is light, under $800 million in the same window. This imbalance favors a short squeeze.

Price is now hovering around $3.04. That’s exactly where the cluster begins. If bulls can push above $3.13 and sustain it, the liquidation pressure could kick in fast.

This also matches with what CasiTrades pointed out: XRP reclaimed $2.96 after a clean RSI divergence and a full 5-wave structure to the downside. That suggests the recent bottom was technical, not just emotional.

Whales Still Buying, but the XRP Price Structure Rules Everything

TapTools confirms whales are still buying XRP even after the recent dip. Whale activity has hit a multi-month high. That’s important, but it doesn’t override the structure.

Even EGRAG Crypto, which has long maintained a macro bullish case, says XRP must flip $3.13 to hold that structure. Anything below it, and the bull trend is paused; not invalidated, but paused.

If price closes below $2.90 on the 4H with a full-body candle, EGRAG expects a full 5-wave completion to $2.65. That’s where the trap flips; bulls get baited at $2.94, price cuts through, and short-term panic follows.

So right now, XRP is sandwiched between two fakeout zones: $3.13 and $2.94. Until one breaks, the wedge trap continues. But with $1.84 billion in short fuel stacked above $3.04, the risk/reward tilts slightly toward the upside.

XRP has been a patience game. The chart shows that bulls and bears both got trapped in the same wedge, just at different times. Unless the XRP price breaks above $3.35 or falls below $2.94 with volume and body candles, expect more indecision.