CW, a market analyst, pointed out that if XRP rises to $3, a large number of short positions could be liquidated. The liquidity heatmap shows high concentration at that level, indicating it could act as a trigger point for forced closures. Such a move could create rapid upward momentum if short positions are forced to cover.
Currently, XRP is trading below that threshold, fluctuating between $2.85 and $2.95. The $2.90 to $2.95 range has formed as a short-term resistance level. A complete breakout above this range would bring the price back to the $3.00 level and increase the risk of a liquidation wave.
The current price of XRP is $2.87 with a daily trading volume of $4.67 billion. The price has decreased by 1% in the past 24 hours and 8% in the past seven days. Trading activity remains strong, making the Ripple token one of the most liquid assets in the market.
On-chain metrics show that large investors have been actively trading. Institutional cash flow has pushed XRP's trading volume to 155 million during recovery sessions, much higher than the daily average of 63 million. This increase indicates stable participation even as prices adjust.
Profit-Taking of Long-Term Holders
Glassnode data shows that long-term holders have taken profits. Realized gains exceeded $2 billion during the recent pullback, indicating strong distribution during consolidation phases.
This pattern is not new for XRP. On July 24, profit-taking surged to $375 million as the token peaked near $3.55. That event led to a 10% drop in one day, the largest single-day decline in over three months. Current activity shows a similar position as the price fluctuates below $3.
Technical Indicators and Ripple Update
Analyst Ali Martinez notes that the TD Sequential indicator has shifted to a bullish trend on the hourly chart of XRP. The same signal accurately identified the peak at $3.65 in July. The latest indicator shows short-term recovery potential.
At the same time, market pressure has weighed on the digital asset, with $360 million liquidated across the industry in recent days. XRP continues to attract buyers at support levels, demonstrating resilience despite the widespread sell-off.
Ripple Labs has confirmed a new agreement with Japanese financial group SBI Holdings. According to the memorandum of understanding, SBI VC Trade will begin distributing Ripple's RLUSD stablecoin in Japan starting in Q1 2026.
