NewsBTC
Jan 20, 2026
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XRP Analyst Predicts Short Squeeze Could Propel Price to New High

A potential short squeeze may drive XRP beyond its all-time high of $3.90, as highlighted by market analyst Bird on X (formerly Twitter).

Key Liquidity Zones For XRP

  • Bird's analysis identifies zones of leveraged positions in a chart, showing liquidity levels where forced buying or selling could occur due to stop-loss orders and liquidations.
  • The daily chart heatmap categorizes liquidity into two zones: red for deep liquidity and lighter colors for less liquidity.
  • Price movements away from low liquidity areas tend to be rapid, often triggering large sell-offs and wiping out long positions.

XRP

Price Targets $4.20

  • Bird noted the formation of a dense liquidity pocket around $4.20, primarily from short XRP positions, which may attract market makers to push prices toward this level.
  • This scenario suggests a continuation of the XRP price rally, with an imminent new all-time high expected due to a looming substantial short squeeze.

XRP

Currently, XRP is trading at $2, having briefly dropped to $1.84 earlier on Monday.