XRP Shorts Face $283K Hit as Bulls Drive Price Above $2.25

XRP short positions faced $283,440 in losses within an hour as bullish momentum drove the token above $2.25.

The token’s liquidation imbalance surged by 5,744%, signaling a major disruption in short market activity.

Analysts see signs of an inverse head and shoulders pattern, hinting at a possible breakout toward the $2.60 mark.

XRP saw a sharp liquidation imbalance over the past hour, triggered by a sudden price reversal on July 7, 2025. The token's market value held steady above $2.25, sparking a rapid liquidation event that saw short-position traders bear nearly all of the recorded losses.

According to updated data from Coinglass, XRP recorded a total liquidation of $288,280 within a single hour. The majority of this impact affected short traders, who suffered $283,440 in liquidations. Long positions saw minimal disruption, with just $4,850 in losses.

This swift and one-sided liquidation was fueled by an unexpected shift in market sentiment, which caught bearish traders off guard. The sudden uptrend in XRP’s price movement reversed the bearish outlook and caused a surge in short liquidations.

XRP Price Movement Sparks Speculation of a Breakout

XRP’s price behavior has stirred discussion among analysts, with growing speculation around a potential breakout. While some market observers remain cautious of a bull trap scenario, others point to technical indicators suggesting strength in the token’s formation.

A recent chart shared by a popular crypto analyst highlighted the possibility of an inverse head and shoulders pattern forming on XRP’s price chart. This technical setup is often seen as a precursor to a breakout and may push XRP toward the $2.60 range if confirmed.

Market is Watching XRP as Investor Confidence Intact

Although it is believed that there is a chance of a bull trap, some investors have been unaffected by the recent price action on XRP. Investors are closely observing the XRP to discern its next step and act accordingly.

By Monday, its liquidation imbalance figure of 5,744% was indicative of a big change in short-term market mechanics. Such an incident reveals the market's higher susceptibility to rapid sentiment changes, particularly in the case of high-cap-based tokens such as XRP.

The fact that XRP has managed to maintain its self-healing above the $2.25 level is indicative of the fact that bullish traders are still interested in the coin. Market analysts still follow the trend of XRP with future fluctuation of prices that may affect both long and short traders.

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