Bitcoin Short Squeeze Drives XRP to Seven-Month High
A sudden surge in Bitcoin's price led to a massive short squeeze that propelled XRP to its highest level since November 2024, reaching $1.29 on Wednesday and staying above $1.25 for the week.
The rally was unexpected, as XRP's usual correlation with Bitcoin broke down and ETF inflows dried up, which had previously supported the token's gains.
The catalyst behind the surge was a massive short-liquidation event on Wednesday, where $2.75 billion in crypto shorts were liquidated, CoinGlass data shows. This was the biggest short-liquidation event ever recorded.
XRP's price jumped by 10.40% on Wednesday and added another leg Thursday, pushing the weekly candle toward $1.32, just under its 200-day average price. The Relative Strength Index (RSI) hit 79.2, indicating an asset heavily overbought.