Will XRP price double again? ‘Latent’ buy pressure puts shorts in danger

XRP, the native token of the Ripple network, has spent several months trading within a tight consolidation band, largely constrained by macroeconomic pressures and lingering judicial sentiment. However, beneath the surface of stagnant price action, sophisticated on-chain analysis and derivatives data suggest a significant build-up of ‘latent’ buy pressure that could catalyze a dramatic short squeeze, potentially propelling the asset toward the psychological $1.00 mark and effectively doubling its current value.

**The Technical Setup and Targets**

Currently, XRP finds stiff resistance around the $0.62 level. A successful breach and hold above this zone is crucial for the bullish narrative. If momentum carries XRP past $0.62, the next major resistance band sits near $0.78, followed by a clear path to $1.00. Doubling the price from the current sub-$0.55 range requires sustained buying volume not seen since the initial ruling favorable to Ripple in 2023.

**The Short Squeeze Threat**

The primary danger for short sellers lies in the high amount of Open Interest (OI) accumulated in short positions during this phase of price compression. This high OI, coupled with relatively low funding rates, indicates that traders are betting heavily on a downward move. This accumulation creates latent demand; should the price reverse, these short positions will need to be covered, creating a massive influx of market buy orders—the definition of a short squeeze.

Analysts note that liquidity pools show substantial stop-loss clusters placed just above the $0.65 mark. A sudden volume spike that liquidates these stops could initiate a cascade, rapidly accelerating the price movement and ensuring the $1.00 target becomes highly attainable.

**Fundamental Tailwinds**

While technicals suggest immediate upside potential, the foundational strength remains the ongoing clarity surrounding Ripple’s legal battles with the SEC. Any positive development or further regulatory certainty will act as a major fundamental catalyst, reinforcing the technical setup and providing the necessary narrative support for whales and institutional investors to enter the market aggressively, further fueling the breakout attempt.

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