Ripple’s XRP Price Surges to $1.14 Due to Short Squeeze in Market
July 4, 2026
Ripple’s XRP token has experienced a surge of about 5% over a 24-hour period, reaching $1.14, outperforming the general market due to a short squeeze that was initiated by a major technical breakout. Despite a slight decline in trading volume by 12%, the transaction value stands at approximately $1.7 billion, with the market capitalization settling close to $71 billion. Analysts project that XRP could reach $1.62 by the conclusion of 2026, with a 7-day price target set at $1.20, a mark that experts believe the token can surpass effortlessly if the current momentum continues.
The strengthening narrative surrounding XRP is fueled by significant institutional-grade development and an increase in holder accumulation, all while exchange liquidity tightens. The recent spike in the token’s price was a result of a series of short liquidations that were triggered when XRP broke free from a downward trend lasting a month, surmounting a crucial resistance level at $1.10. Analysts have pointed out that over 80% of the losses suffered by XRP shorts during this movement contributed to the forced buying that drove the rally. Moreover, leveraged traders were compelled to cover their losing positions, unleashing a cycle of buying that accelerated the upward trend.
The recent unlocking of 1 billion XRP from Ripple’s escrow resulted in nearly 70% of tokens being re-escrowed, thereby limiting the influx of new supply and aiding in its absorption without causing a shock to its price. Concurrently, data has revealed substantial outflows from exchanges, which have been interpreted as a strategic accumulation by larger investors. This underlying demand has effectively absorbed potential selling pressure, reinforced by a positive macroeconomic environment that is providing favorable winds to support XRP’s upward trajectory.
The immediate bullish scenario relies on XRP’s ability to maintain the $1.08-$1.10 zone as a support level. A significant upcoming event that could impact regulatory sentiment is the U.S. Senate vote on the CLARITY Act, expected in late July or August 2026. A sustained breakout above the next key resistance level is crucial for confirming this positive trend. Crossing above the Fibonacci 38.2% retracement level at $1.18 would signify robust bullish momentum, while breaching $1.08 would invalidate the short-term uptrend.
In conclusion, the confluence of a technical breakout, resulting short liquidations, supportive on-chain flows, and an upward-trending market sets the stage for a credible recovery scenario for XRP.
