Massive XRP Short Squeeze that Send XRP to $4 Incoming

Crypto analyst Steph Is Crypto (@Steph_iscrypto) has suggested that XRP may be on the verge of a significant short squeeze, potentially driving its price to $4. The bold prediction, shared in a recent post on X, was accompanied by a market depth chart indicating a possible liquidity gap above the current trading range.

The chart shows XRP’s price movements over recent months, with a highlighted area indicating low resistance near the $4.00 level. This suggests that if bullish momentum builds, a rapid upward move could occur as short sellers cover their positions.

🚨BREAKING:

MASSIVE #XRP SHORT SQUEEZE INCOMING

SEND IT BACK TO $4,00! pic.twitter.com/4S2Xg3N6jv

— STEPH IS CRYPTO (@Steph_iscrypto) February 25, 2025

Understanding the Short Squeeze Scenario

A short squeeze happens when traders who have bet against an asset by shorting it, are forced to buy back as the price rises. This buying pressure can accelerate price increases, leading to sharp rallies. The possibility of such an event for XRP hinges on factors such as market sentiment, liquidity, and large short positions.

The digital asset experienced a similar phenomenon in early February when a rapid surge wiped out $2.9 million of short positions. While this price surge was quickly halted by a bearish, the chart shared by Steph Is Crypto suggests a lack of significant sell orders between XRP’s current price range and the $4.00 level.

This absence of resistance means that if buying volume increases, there could be little to stop a rapid price movement. Traders who previously bet against XRP may need to exit their positions quickly, adding to the momentum.

Is XRP Headed for $4?

In recent months, XRP has faced volatility influenced by broader market trends and regulatory developments. Most notable was the decline in early February which pushed the asset’s price to a 2025 low of $1.8739, briefly losing the $2 level.

However, the asset has recovered, and while negative market developments can hinder its growth, there are major positive developments in the immediate future that could push it beyond $4.

The U.S. Securities and Exchange Commission (SEC) has recently dropped multiple high-profile investigations and dismissed crypto-related lawsuits. The most recent of these is the SEC’s decision to drop its investigation into Uniswap Labs , and these developments have prompted experts to suggest that the Ripple lawsuit will be the next to go.

Despite the bearish momentum in the broader market, XRP is showing multiple positive signs, and a massive rally could begin sooner than many expect.

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