Well, well, well, it seems that our dear friends in the land of XRP might be in for a rather exciting rollercoaster ride. Yes, you heard it right! A significant short squeeze could be lurking just around the corner-like a cat with a laser pointer-ready to send prices soaring past the magical barrier of $3.90. š¢
Market analyst Bird (because who wouldnāt trust a financial oracle named after a creature that spends most of its time chirping?) took to the illustrious social media platform known as X (formerly Twitter, but letās not dwell on that) to share his sage insights. š¦
Key Liquidity Zones For XRP
In a display of technical wizardry, Bird unveiled a chart that looks like someone spilled a box of crayons on a financial report. The colorful bands represent levels of liquidity, which is just a fancy way of saying where all the money is hiding, and where you might trip over a stop-loss order if youāre not careful.
His daily chart heatmap divides liquidity into two riveting zones: red (deep liquidity, like a well-stocked bar) and lighter colors (where liquidity is about as scarce as a politicianās promise). š¹

As Bird observed, when prices venture away from these low liquidity zones, they tend to do so with all the grace of a drunk penguin. It appears that when prices get close to the big stop-loss clusters, it can trigger sell-offs that clear out long positions faster than you can say āliquidation.ā š§šØ
Price Targets $4.20
After this chaotic dance, prices often boomerang back towards those pesky shorts, leading to yet more liquidation events. On Sunday, for instance, long XRP positions were liquidated quicker than you can say āoops!ā
Now, Bird claims thereās a densely packed liquidity pocket forming around the $4.20 mark. Itās like a party where only short positions are invited, and market makers are keen to drive prices toward this spot to settle their debts instead of running away screaming. šŗš°
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As of the last time someone bothered to check, the fifth-largest cryptocurrency was trading at a respectable $2, having flirted with the idea of dropping to $1.84 earlier that day-like a yo-yo with commitment issues.
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2026-01-20 00:52