XRP Poised for Potential Short Squeeze as Liquidity and Open Interest Surge

Prominent crypto analyst CryptoInsightUK has highlighted mounting technical indicators suggesting XRP could be on the verge of a significant short squeeze. Recent on-chain and derivatives data reveal dense liquidity clusters above current price levels, with open interest steadily rising since June 24. The analyst points to vulnerable short positions concentrated near the $2.40 mark, where forced liquidations could accelerate upward price movement. This development comes amid growing market interest in XRP, as traders monitor these key levels for potential breakout opportunities. The combination of rising liquidity and increasing open interest creates a compelling setup for a short squeeze, which could propel XRP's price higher if triggered. Market participants are closely watching these technical developments as they could signal an important shift in XRP's price trajectory in the coming weeks.

Analyst Foresees Short Squeeze Potential for XRP Amid Rising Liquidity and Open Interest

Prominent crypto analyst CryptoInsightUK has identified mounting technical signals suggesting XRP may be primed for a short squeeze. On-chain and derivatives data reveal dense liquidity clusters above current price levels, with open interest climbing steadily since June 24. The analyst notes particularly vulnerable short positions concentrated NEAR $2.40, where forced liquidations could trigger accelerated upward momentum.

Hourly chart liquidity patterns show a striking imbalance, with what the analyst describes as "SUPER dense liquidity above us"—a structure mirroring pre-squeeze conditions observed in previous rallies. Data from @velo_xyz indicates persistent negative premium and oscillating funding rates during the open interest buildup, pointing to a crowded short trade that may now be structurally exposed.

XRP Faces Key Resistance After Rally From Support Zone

XRP has mounted a recovery from its $2.15 support level, mirroring broader market momentum seen in Bitcoin and Ethereum. The digital asset now trades above $2.22 with its 100-hour moving average providing technical support. A bullish trend line forming at $2.20 on the XRP/USD Kraken chart suggests underlying strength.

Despite clearing the 61.8% Fibonacci retracement level of its recent decline, XRP faces immediate resistance at $2.285. The 76.4% Fib level near $2.32 remains unconquered, creating a critical test for bulls. Market participants are watching whether the token can break through this technical barrier to confirm continuation of its upward trajectory.

Custodia and Kraken Lead Crypto Firms in Fed Master Account Race

Custodia Bank and Kraken Financial have emerged as the sole crypto-native institutions with full bank charters, positioning them as frontrunners in the competition for Federal Reserve master accounts. These accounts provide direct access to the Fed's payment system—a privilege long denied to digital asset firms.

Custodia CEO Caitlin Long framed the hierarchy starkly: 'Master accounts are Diamond-tier, bank charters Platinum, trust companies Gold, and money transmitter licenses Silver.' The distinction highlights the regulatory gulf between traditional finance and crypto's current standing.

The Fed faces a pending lawsuit from Custodia challenging its exclusionary policies, while Ripple attempts to climb the access ladder through subsidiary Standard Custody. This regulatory showdown coincides with growing institutional demand for seamless fiat-crypto rails.

Ripple Distances Itself from Linqto Amid DOJ Probe and Bankruptcy Concerns

Ripple CEO Brad Garlinghouse has clarified that the company never directly sold shares to Linqto, an investment platform under DOJ investigation and facing bankruptcy risks. Linqto holds 4.7 million Ripple shares acquired on the secondary market, with no direct business ties between the two entities.

The controversy has fueled investor anxiety, reflected in XRP's price decline. Garlinghouse emphasized Ripple's limited exposure to Linqto's regulatory issues, as investors hold fractional shares through special-purpose vehicles.

Market sentiment remains cautious as legal uncertainties persist. The situation underscores the complex interplay between cryptocurrency firms and traditional investment platforms navigating regulatory scrutiny.