XRP Price Hits $2.25: Is a Massive Crash Coming Next?

XRP’s recent breakout past its descending trendline has caught the attention of bulls, but technical signals suggest caution. Despite XRP price reclaiming the $2 mark, the broader structure remains bearish, with the $2.25 level emerging as a key resistance that could trap aggressive buyers. A build-up in open interest without spot market support hints at a short squeeze setup, not sustained demand. For traders, the bounce may offer an opportunity, not to buy, but to short into potential weakness.

Technical Setup and Short Squeeze Risk

The XRP network’s daily chart shows a breakout above a six-week descending trendline, but the overall trend remains bearish. Price has yet to breach the previous lower high, keeping the structure intact. While the RSI hints at momentum shifting, volume tells another story; a downtrend in volume signals weak underlying demand.

Meanwhile, the derivatives data support caution. Open interest has climbed as price rose 6%, but spot cumulative volume delta remains flat. This suggests the rally may be fuelled by leveraged positions rather than real buying strength. Coinglass’s liquidation map shows a dense cluster of stop-loss and liquidation points around $2.25, indicating the potential for a short squeeze before a reversal.

This setup is classic: price rallies toward a known liquidity pocket, squeezes shorts, then resumes the broader trend downward. Fibonacci resistance at $2.46 and $2.70 reinforces the ceiling. Unless the XRP token breaks the $2.23–$2.25 area with sustained volume, traders may want to fade the rally, not chase it. Let’s take a look at XRP price prediction to see what the short-term chart says.

XRP Price Prediction for April 14, 2025

XRP/USDT is currently trading at $2.13 after a recent pullback from the $2.25 resistance zone. The price respected key support near $2.05, signaling strong buyer interest at that level. Previous resistances have now flipped into support, suggesting bullish continuation if momentum holds. RSI hovers near 48, reflecting a neutral stance after recent overbought conditions around April 12. Earlier oversold signals from RSI aligned with bounces from $1.65 and $1.75 supports, validating those levels. 

Chart 1: Analysed by vallijat007, published on TradingView, April 14, 2025

Meanwhile, the MACD shows a weakening bullish crossover, with the signal line above the MACD line, suggesting a potential consolidation or minor correction before any further breakout. If the XRP price breaks above $2.25, the next upside target could approach $2.40. However, failure to hold the $2.05 support could drag the pair back toward the $1.90 zone. Traders should watch for momentum signals and volume confirmation before entering positions, as XRP sits at a technical crossroads where either a bullish continuation or short-term retracement is possible.

Caution Ahead Despite Breakout

The XRP network’s recent breakout may look bullish, but key signals point to a short-lived move. The $2.25 resistance zone is packed with liquidation levels, setting the stage for a potential short squeeze followed by a bearish reversal. Weak spot buying, declining volume, and unbroken high-timeframe resistance suggest traders should remain cautious. Unless the XRP token clears $2.25 with conviction, this bounce could be a trap. For now, short setups may offer more favorable risk-reward than chasing upside momentum.

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