XRP Shorts Reach Record Levels Ahead of Potential Sharp Squeeze

Market positioning in XRP has become increasingly bearish, with shorts dominating current positions. According to BankXRP's assessment, this could potentially fuel a sharp squeeze and recovery.

A recent data from Hyperliquid shows that nearly all top XRP traders currently hold short positions. The largest positions by notional value are short, most opened between $1.22 and $1.53 at 20x leverage, resulting in significant losses for some traders.

BankXRP argues that a large concentration of leveraged shorts clustered at similar entry prices creates a vulnerable position. If XRP recovers with enough momentum, those shorts face mounting losses at the same time, leading to liquidations and automatic buy orders that push the price higher.