XRP Squeezed as Bitcoin Liquidity Dries Up – Can It Still Hit $3?

XRP bulls are sweating as Bitcoin’s liquidity crunch sends shockwaves through the market. The third-largest crypto by market cap is caught in the crossfire—down 12% this week while BTC struggles to hold $60K.

Blame the usual suspects: macro fears, ETF outflows, and that classic crypto combo of leverage implosions and overzealous derivatives traders. But here’s the twist—XRP’s legal clarity (thanks to Ripple’s partial SEC win) might give it an edge when the dust settles.

Targeting $3 requires a 400% rally from current levels. Possible? Sure. Probable? Ask the ’institutional adoption’ PowerPoint slide artists. Meanwhile, traders are eyeing $0.45 as make-or-break support.

Fun fact: This dip coincides perfectly with another ’crypto hedge fund’ quietly liquidating its ’long-term hold’ positions. How… predictable.

Bitcoin squeeze tightens, leaving Ripple in limbo

High-cap altcoins are stuck in chop city, trading well below their weekly highs as Bitcoin’s liquidity crunch keeps the market on edge. 

Roughly $29 million in longs got wiped in the past 24 hours alone — classic leverage puke. Zoom into the 4-hour chart, and the story’s the same: Bull-side exposure is getting steamrolled. 

Bitcoin’s rally is stalling near the critical $105,000 resistance. Momentum is fading, technicals are running hot, and holders are locking in profits — all classic signs of an overheated setup.

Source: TradingView (BTC/USDT)

Shorts are clearly stepping in to fade the euphoria.

XRP isn’t escaping the heat either. Short-sellers are in the driver’s seat, dominating order FLOW and ambushing bullish entries.

Long liquidations have surged to $16.2 million, accounting for nearly 80% of total XRP wipeouts.

Unless Bitcoin flips $105k with conviction, expect liquidity squeezes to persist — and that makes XRP’s path beyond $2.60 a tough climb in the short term.

BTC holds the key to XRP’s $3 play?

Recently, XRP briefly flipped Tether [USDT] in market cap, claiming the third spot among crypto heavyweights. While short-lived, it delivered a strong psychological jolt to XRP bulls.

As AMBCrypto flagged earlier, with BTC grinding toward a local top, the rotation narrative is heating up. 

Right on cue, XRP/ETH tagged a structural support zone, and with ETH looking overextended, the reversal play lit up. 

Result? XRP’s market cap blasted past $150 billion, riding a momentum burst straight out of the rotation playbook. 

The psychological impact? Tangible. Binance reserves for XRP slid from 2.906 billion to 2.89 billion – signaling active offloading into cold wallets or strategic accumulation.

Source: CryptoQuant

Overall, BTC’s sideways chop is priming the pump for altcoin inflows, but the real fireworks will light up when BTC shatters the $105k resistance. 

That’s when short squeezes will rip through, and XRP is perfectly positioned to capitalize on that liquidity squeeze.

With robust on-chain demand building a solid foundation, hitting $3 XRP isn’t just a pipe dream. It’s a build-up waiting for a Bitcoin-fueled breakout.