The derivatives market for XRP shows extremely bullish positions, with long liquidations reaching $56,076 within an hour, while short liquidations fell to $0, reflecting a 56,076% imbalance. Short positions are $1.77 billion, while long positions are $327 million, indicating a risk of short squeeze due to this imbalance. The clear regulation from the U.S. Securities and Exchange Commission (SEC) decision in August 2025 and the adoption by institutions, including a trading volume of $1.3 trillion for Ripple in the second quarter and ETF inflows, support the momentum of XRP. However, as XRP consolidates near key levels, overconfidence and macroeconomic factors pose volatility risks.