Ripple Investors Be Careful: $XRP Reaching $3 Could Cause a Large Liquidation Wave

CW, the market analyst pointed out that if XRP rises to 3 dollars, a large number of short positions could be wiped out. The liquidity heatmap shows a high concentration at that level, indicating it could act as a trigger point for forced liquidations. Such a move could create rapid upward momentum if the short positions are forced to sell.

Currently, XRP is trading below that mark, fluctuating between 2.85 and 2.95 dollars. The 2.90 to 2.95 dollar range has formed as a short-term resistance level. A complete breakout above this range would bring the price back to the 3.00 dollar threshold and increase the risk of a liquidation wave. The price of XRP is currently at $2.87 with a daily trading volume of $4.67 billion. The price has decreased by 1% in the last 24 hours and has fallen by 8% over the past seven days. Trading activity remains robust, making the Ripple token one of the most liquid assets in the market. On-chain data shows that large investors have been active. Institutional money has pushed XRP trading volume to 155 million during recovery sessions, much higher than the daily average of 63 million. This increase indicates stable participation even as prices adjust. Long-Term Holders' Take Profit Glassnode's data shows that long-term holders have taken profits. Realized profits have exceeded $2 billion during the recent pullback, indicating strong distribution during consolidation phases. This pattern is not new for XRP. On July 24, profit-taking activity surged to $375 million as the token peaked near $3.55. That event led to a 10% drop in a day, the largest one-day drop in over three months. Current activity shows a similar position as the price fluctuates below $3.

Technical Indicators and XRP Updates Analyst Ali Martinez notes that the TD Sequential indicator has shifted to a bullish trend on the hourly chart of XRP. A similar signal accurately identified the peak at $3.65 in July. The latest indicator shows short-term recovery potential.

At the same time, market pressure has weighed heavily on digital assets, with $360 million being liquidated across the industry in recent days. XRP continues to attract buyers at support levels, showing resilience despite the widespread sell-off. Ripple Labs has confirmed a new agreement with Japanese financial group SBI Holdings. According to the memorandum of understanding, SBI VC Trade will start distributing Ripple's stablecoin RLUSD in Japan beginning in Q1 2026.