XRP Bulls Target $2.60 – A Single Catalyst Could Ignite a Significant Short Squeeze

As of April 21, 2025, XRP’s bullish momentum is gaining traction, with traders setting their sights on a key resistance level at $2.60. Market analysts suggest that a decisive breakout above this threshold could trigger a substantial short squeeze, potentially accelerating upward price action. The asset’s recent consolidation phase and increasing trading volume indicate growing investor confidence. Technical indicators, including RSI and MACD, are flashing bullish signals, reinforcing the possibility of a major move. Institutional interest and regulatory clarity (notably from the FSA and other global bodies) may further fuel this rally, creating a perfect storm for XRP’s ascent.

XRP eyes $2.60 as next frontier

XRP has successfully broken out from a bullish pennant pattern after weeks of consolidation within narrowing trendlines.

The structure formed after a strong rally and resolved upward NEAR the $1.7980 support level, indicating trend continuation.

Currently, XRP hovered just below resistance at $2.1665 while forming higher lows—a sign of bullish continuation.

If this breakout holds, the next upside target rests at $2.6010—a zone where previous rallies faced rejection.

However, failure to reclaim this level convincingly could trigger a temporary pullback. Still, the pattern remains structurally intact, favoring bulls in the near term.

Source: TradingView

Whales reposition as exchange flows edge higher

Whale-to-Exchange Flows recorded a marginal uptick of 0.51%, totaling 2.88K XRP.

While the increase appears subtle, it points to strategic repositioning by large holders rather than panic-driven selling. Therefore, this Flow likely signals caution and preparation for a directional move. 

Additionally, the lack of aggressive offloading suggests confidence in the market’s stability.

As sentiment and options data align with this measured activity, it becomes clear that whales are closely monitoring price levels before making large-scale moves.

Source: CryptoQuant

NVT ratio spike raises short-term caution flags

The NVT ratio for XRP skyrocketed by 136.83%, reaching a value of 838.17.

This sharp rise indicates that the market cap has grown significantly faster than on-chain transaction volume. Therefore, while price momentum remains strong, underlying utility appears to lag behind. 

Still, if network activity doesn’t catch up soon, valuation may begin to overheat, warranting caution.

Source: CryptoQuant

Short liquidation zone near $2.60 could trigger breakout

Meanwhile, Binance Liquidation data showed a dense band of short liquidations between $2.03 and $2.10. With XRP priced at $2.067, a move above this pocket could cascade into short covers and upward pressure.

Additionally, cumulative short liquidation leverage continues building beyond $2.16, suggesting even stronger pressure if bulls reclaim that level.

However, long liquidations start to appear just above $2.16, showing that buyers are entering the market with high leverage.

This overlapping zone between short risk and long exposure makes $2.10–$2.20 a critical inflection area.

Source: CoinGlass

Can Ripple reclaim $2.60 and push higher?

All considered, XRP’s technical breakout, climbing sentiment, and surging options interest suggest a bullish continuation.

Whale flows support this narrative with careful accumulation, while liquidation dynamics may offer an explosive trigger.

However, the elevated NVT ratio reminds traders that the price must be backed by stronger on-chain performance.

If XRP can clear $2.1665 and sustain momentum past $2.60, it will likely confirm a broader trend shift and solidify its breakout narrative.