XRP Liquidations Accelerate After $1.50 Breakout: Short Squeeze Unfolds

XRP has reclaimed the $1.50 level as market activity accelerates and bullish momentum begins to build after weeks of consolidation. The move higher suggests that buyers are regaining control, with traders closely watching whether XRP can sustain this breakout and establish a stronger uptrend.

Beyond price action, derivatives data is revealing a notable shift in market behavior. According to a recent CryptoQuant report, multiple indicators are now signaling activity levels not seen in weeks, pointing to a renewed wave of participation across XRP markets.

In particular, the Multi-Exchange Open Interest Delta is showing clear signs of expansion. This metric tracks the net change in total open contracts across major derivatives platforms over a given period, offering insight into how traders are positioning.

A positive Open Interest Delta indicates that new positions are being opened, reflecting growing participation and capital inflows into the market. Conversely, a negative reading suggests that traders are closing positions, which typically signals reduced activity or risk-off behavior.

Recent data shows a sustained increase in open interest, suggesting that traders are actively entering the market rather than exiting. For analysts, this shift often signals rising conviction and increasing speculative interest, conditions that can support stronger price movements if accompanied by continued demand and favorable market structure.

Open Interest Surge and Liquidations Drive XRP Breakout Dynamics

The CryptoQuant report provides a broader perspective by tracking Open Interest Delta across six major derivatives exchanges, offering a comprehensive view of how traders are positioning in XRP. The data reveals two distinct waves of position building that preceded the recent breakout.

On March 13, open interest increased by approximately $16 million, followed by a second surge on March 16, where an additional $18 million in positions were opened. This sequence is structurally important, as it shows that traders were actively building exposure before XRP broke above the $1.50 level, marking the asset’s first return to this price zone since February 15.

At the same time, liquidation data highlights the impact of this positioning. XRP’s move above $1.50 forced significant liquidations on short positions, proving that the breakout caught many traders off guard.

The prior increase in open interest played a key role in this dynamic. Higher leverage across the market meant that once the price moved against short positions, forced liquidations accelerated the move, adding momentum and volatility.

This combination of pre-breakout positioning and post-breakout liquidations suggests that derivatives activity amplified XRP’s rally beyond spot demand, creating a feedback loop that intensified price action.

XRP Reclaims $1.50 but Faces Structural Resistance

The XRP 3-day chart shows the asset attempting to stabilize after a prolonged downtrend that began in late 2025. XRP is currently trading around $1.51, having recently reclaimed the $1.50 level, which now acts as a key short-term pivot for price direction.

The broader structure remains corrective. XRP continues to trade below the 50-, 100-, and 200-period moving averages, all of which are trending downward. The market’s current alignment reflects ongoing pressure as sellers frequently meet price rallies with heavy supply at higher levels.

However, the recent rebound from the $1.10–$1.20 region is technically significant. That zone marked a capitulation low, supported by a noticeable increase in volume, suggesting strong buyer absorption. Since then, XRP has formed a base between $1.30 and $1.45, gradually building momentum before pushing higher.

Reclaiming $1.50 indicates improving sentiment, but the asset now faces immediate resistance near $1.70, followed by a stronger barrier around $2.00, where previous consolidation and moving averages converge.

Volume during the recovery remains moderate, signaling that the move is still developing rather than driven by aggressive inflows.

Featured image from ChatGPT, chart from TradingView.com