XRP has reclaimed critical technical levels and pushed toward the top of its recent trading range, driven by a wave of bearish liquidations and a shift in institutional sentiment.
A Decisive Technical Breakout
As of February 25, XRP is trading at approximately $1.44, marking a 7% increase within a 24-hour window. This rally follows a period of stabilization where the asset established a firm base between $1.32 and $1.34.
The most significant technical milestone in this move is XRP’s successful reclamation of both its 50-period simple moving average (SMA) at $1.35 and its 200-period SMA at $1.40. This "double reclaim" suggests a structural shift from a multi-day slide back into a bullish trend.
The "Bear Unwind": $4.4 Million in Short Liquidations
A primary engine behind this price acceleration is a massive "short squeeze." Data from Coinglass reveals that over $6.2 million in XRP positions were liquidated in the last 24 hours. Crucially, the vast majority—$4.4 million—consisted of short positions (traders betting on a price drop). As these traders were forced to buy back XRP to close their positions, it created a feedback loop that propelled the price even higher.
Institutional Confidence Returns
Beyond the charts, institutional data suggests that "smart money" is stepping back in.
ETF Inflows: The Bitwise XRP ETF recorded $3 million in net inflows this Tuesday, a notable reversal from the outflows seen earlier in February.
Support Zones: Total assets under management for XRP ETFs currently sit near $981 million, indicating that institutional players are defending the $1.30–$1.35 zone as a long-term entry point.
Technical Outlook: Overbought but Strong
While the momentum is undeniably bullish, technical indicators suggest the rally is "running hot":
RSI: The Relative Strength Index is currently at 78.18, placing it deep in overbought territory. This often precedes a period of consolidation or a slight pullback.
MACD: The Moving Average Convergence Divergence remains positive, signaling that the upward trend still has strength.
Bollinger Bands: Price is currently pressing against the upper band ($1.43), indicating a high-volatility breakout.
The Bottom Line: If XRP can maintain its footing above the $1.43–$1.44 resistance zone, it may target a return to the $1.60 level. However, traders should watch for a potential "retest" of the $1.40 support level to confirm the strength of this new rally.
