Analyst to XRP Investors: Short Squeeze All the Way to $4.20. Here’s why

XRP is showing signs of a crucial technical setup, according to crypto analyst Bird (@Bird_XRPL). The chart he shared highlights two descending trend lines that the token must surpass for significant upward movement.

Currently trading at $1.4, XRP recently bounced off a low near $1.1, suggesting renewed buying pressure.

Bird wrote, “We need to get through these 2 trend lines for XRP and it could get wild, fast.” He believes XRP will experience a short squeeze that could push it as high as $4.2.

We need to get through these 2 trend lines for XRP and it could get wild, fast.

Short squeeze all the way to $4.20

WATCH. pic.twitter.com/k7DpU8B3Jy

— Bird (@Bird_XRPL) February 7, 2026

Immediate Resistance and the Major Test

The chart shows the first trend line near $1.5 acting as immediate resistance. Breaking this level could signal a shift in market momentum. Crossing this line may trigger additional buying from traders monitoring these technical levels. The price has already formed a new upward trajectory after its recent decline, indicating growing strength among buyers.

The second descending trend line is located near $1.75 and represents a more substantial hurdle. This is the major test for the current setup. If XRP manages to surpass this line, it may trigger accelerated price movement.

Bird’s chart shows green arrows projecting a potential surge to $4.20, reflecting a possible short squeeze scenario. A short squeeze occurs when traders betting against the token close positions, adding buying pressure.

Implications of Trend Line Breaks

XRP’s recent price movement indicates consolidation after the sharp decline from $1.9 to $1.1. A broader look reveals that this consolidation has lasted for over a year. The current recovery shows higher lows forming along the ascending trajectory toward the first trend line.

This pattern suggests buyers are gradually regaining control, and momentum is building as the token approaches critical resistance levels. The current structure points to a potential breakout if these trend lines are breached.

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Surpassing both descending trend lines would confirm an emerging bullish trajectory. The first line tests immediate market sentiment, while the second line serves as a key hurdle before a potential short squeeze. Breaking these levels could trigger accelerated buying, sending XRP toward a new all-time high.

Key Price Points to Watch for XRP

Immediate focus for XRP remains on the first trend line near $1.5. The secondary line at $1.75 marks the next critical test. If these levels are cleared, XRP could approach the $4.2 target projected in Bird’s technical outlook. Traders will be monitoring these points closely to gauge momentum and confirm the strength of the ongoing recovery.

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 urged to do in-depth 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.