XRP Price Primed for a July Short Squeeze—Here’s Why

Crypto traders are eyeing XRP like a hawk circling prey. With open interest piling up and bears overleveraged, July could deliver a violent short squeeze—if the stars align.

Short interest hits critical mass

Perpetual swaps funding rates flipped negative last week as speculators doubled down on downside bets. Now the market's coiled like a spring—one bullish catalyst could trigger liquidations.

Ripple's legal overhang lifts

The SEC lawsuit resolution removed XRP's biggest uncertainty. While the token still trades like a speculative asset (because it is), the regulatory clarity removes a major bear thesis.

Exchange reserves drying up

CEX wallets show dwindling XRP inventories—just as derivatives demand spikes. That supply-demand mismatch could turbocharge any upside move. Because nothing fuels a crypto rally like good old-fashioned scarcity theater.

Will it actually happen? Who knows. But watching hedge funds get squeezed out of positions would almost make up for the last three years of stagnant prices. Almost.

XRP price technical analysis

Technical indicators suggest that an XRP short squeeze could be imminent for two reasons. The token has formed an inverse head-and-shoulders pattern, a widely followed bullish reversal signal.

XRP has also developed a symmetrical triangle, with its trendlines converging NEAR a breakout point. This triangle is part of an eight-month bullish pennant pattern that began following its short squeeze in November of last year.

A breakout from this structure could lift XRP toward last year’s high of $3.39, an increase of 48% from current levels. A drop below the support at $1.9130 WOULD invalidate the bullish setup.