XRP Price Faces $55M Short Liquidations at $2.32 as Bullish Pattern Emerges

XRP price trades at $2.17 on June 20, with a monthly loss of around 12%. Trading volumes had dropped to $2 billion, reflecting fading market interest. However, XRP could now be at a tipping point as it faces $55 million in short liquidations at $2.32. A double bottom pattern suggests getting to this price is likely if crucial support holds.

XRP Price Eyes Short-Term Rally to $2.32

The four-hour price chart shows that XRP could be on the way to making a roughly 7% rally to $2.33. This follows the formation of a double bottom pattern that shows that bulls are actively defending support, and a bounce to the upside may be imminent.

The crucial support in this pattern lies at $2.12, and if XRP price can bounce from this level, the reversal could push it to the target price of $2.32. If Ripple price can get to this target, it will have broken out of a tight consolidation that has been deterring both buyers and sellers. As CoinGape reported, this breakout is imminent as bulls scale back XRP leverage bets.

XRP’s RSI on this lower timeframe is rising with higher lows, which usually indicates that buying pressure is beginning to build around this support level. If this indicator crosses above 50 and continues its ascent, the momentum will flip bullish, making the rally to the $2.32 price more likely to occur.

The other factor supporting this bullish thesis for XRP price is the AO indicator that has turned green, albeit remaining below the zero line. This is a sign that bears could be losing their control over the market as buyers likely frontrun the positive developments in the Ripple vs.SEC lawsuit.

However, XRP whales have been selling Ripple tokens, which could weaken the trend reversal from the $2.12 support level. In this case, Ripple price faces the risk of dropping below $2.

Ripple Token Faces $55M Short Liquidations

The derivatives market highlights a setup that could aid an XRP price rally. This setup aligns with the target price of the double-bottom pattern of $2.32, where $55 million short positions are at risk of liqiidation if the token can surge to these levels.

Data from Coinglass shows that if the price of Ripple gets to this price, $55 million short liquidation leverage will be wiped out. Such an occurrence would be bullish for the price as short liquidations happen through buying, which will give XRP the much-needed support to break out of a seven-month consolidation range.

Therefore, as the double-bottom chart formation signals that XRP price could make a strong bounce if bulls defend the $2.12 support level, buying pressure may begin to rise. Hitting the $2.32 target price will cause a cascade of short liquidations that could spark an upward trend.