XRP Price Soars on Short Squeeze: Will It Reach $2.00?

XRP's price surged from $1 to $1.66 in just three days, but was it driven by genuine buying or short liquidation? The rally began after a three-week stagnation period, during which XRP barely budged on the $1 handle.

Three key events are credited with driving the price up: Evernorth's SEC hurdle clearance, ETF inflows, and the XRP Ledger reaching 5 billion lifetime transactions. However, experts note that ETF flow data doesn't reveal who bought the tokens, only how many were purchased.

The price action suggests a short squeeze rather than steady spot accumulation. The move from $1.05 to $1.66 was characterized by high futures volume and a vertical candle, indicating a rapid liquidation of short positions.

While XRP has been trading sideways since the spike high, it's essential to note that this is a common behavior after such a significant price increase. The chart shows a 'price vacuum' between $1.10 and $1.30, where there's no structural support or resistance.