Over the past month, traders and analysts have been closely watching XRP’s price action on Binance, where an unusual build-up in liquidity has caught the attention of seasoned market participants.
Crypto trader and analyst Xaif (@Xaif_Crypto) recently shared a heat map on X, amplifying speculation that a short squeeze may be on the horizon.
The heatmap tracks resting limit orders on the XRP/USDT pair. The horizontal bands represent liquidity concentrations, with yellow and green tones indicating heavier stacking.
The chart covers a one-month window from early June to July 6. During this period, XRP’s price fluctuated between $1.9 and $2.4, with visibly intense activity near the $2.2–$2.3 range.
XRP SHORT SQUEEZE LOADING?🤯
We all see it… Heatmap doesn’t lie 👀
Liquidity stacked, whales circlingyou already know what that means 🚀 pic.twitter.com/5O7Jsa07Un
— 𝕏aif🇮🇳|🇺🇸 (@Xaif_Crypto) July 6, 2025
XRP Liquidity Clusters and Whale Activity
The most striking element in the chart is the consistently high concentration of limit orders clustered just above the current price. These thick, persistent liquidity bands suggest that significant participants are positioning at key levels. According to Xaif, liquidity is stacked, and whales are circling, preparing to absorb short positions or trap sellers.
This kind of behavior often precedes a short squeeze. This is an event where heavily shorted assets rapidly rise in price, forcing short sellers to cover positions at higher prices, thereby accelerating the rally. While a short squeeze isn’t guaranteed, the heatmap’s layout and price correlation suggest that conditions may be aligning for such a move.
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— TimesTabloid (@TimesTabloid1) June 15, 2025
XRP Price Structure and Technical Context
During the first half of the observed month, XRP trended downward, testing sub-$2 levels before rebounding sharply. This price recovery occurred amid visible shifts in liquidity layers, where bids began stacking more aggressively below $2.1 while asks remained firm near $2.3. Such imbalances typically set up a squeeze scenario as price approaches the upper resistance range.
At the time of his analysis, XRP was consolidating just above $2.2, with order book activity intensifying on both sides. However, the more pronounced clustering on the ask side may point toward a potential breakout trap if sellers are caught off guard. A breakout above $2.3 could ignite a swift upward move if short sellers begin closing their positions.
Market Outlook
While it remains speculative, the technical setup highlighted in Xaif’s post presents a compelling case for increased volatility. XRP has also seen a surge in Open Interest, reinforcing the belief of an imminent short squeeze.
The heatmap doesn’t offer certainty, but as the trader notes, “the heatmap doesn’t lie.” Traders should closely monitor the order book movements and funding rates to confirm any impending squeeze.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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