Increased XRP Long Trades Strengthen the Likelihood of a Long Squeeze

At first glance, it appears that leverage usage is rising again while the price is falling. The #XRP price has fallen from approximately $1.40 to the $1.17 region. The Estimated Leverage Ratio has increased from 0.13 to 0.18 in recent weeks. The Funding ratio is predominantly in negative territory. This indicates that many traders opened long positions at the bottom. Therefore, many investors may lose money with a long squeeze.

According to the chart, it is clear that the downside risk will continue in the short term. Because leverage is increasing while the price is falling. This is generally not a healthy structure. Funding is negative. Although it shows a high concentration of short positions in the market, the inability of the price to react indicates weakness. ATR is at historical lows. Volatility is severely squeezed. Such a drop in ATR usually indicates that a major downward move is approaching.

According to the price structure in the chart, the first strong support is at the $1.10 - $1.15 level. Currently, the price is already just above this region. The second support level is $1-$1.05. This area, acting as psychological support, could see a concentration of buyers. Below $1, investors may begin panic selling. If leveraged long positions start to be liquidated, the price could quickly fall below $1.

The chart shows the Estimated Leverage Ratio turning below 0.18, Funding becoming sharply negative and then neutral, and the price holding in the $1.10-$1.15 region, suggesting that the price has now found its bottom. However, this chart doesn't definitively indicate a bottom has been found. On the contrary, it shows that there are still uncleared long positions in the market due to increased leverage during the price drop. Therefore, a liquidation wave is possible in the short term. $XRP