XRP price charts are flashing a possible 25% relief rally this month, with a death cross and liquidation signals aligning for a short-term bounce. One analyst is also tracking a longer-term rebound that could push the token toward $8.
Death cross and liquidation signals
The so-called death cross — when a short-term moving average crosses below a longer-term one — has appeared on XRP's daily chart. Historically, that pattern often precedes further declines, but in this case it coincides with extreme liquidation readings. Open interest data show a heavy concentration of short positions, meaning any upward move could trigger a cascade of buy orders as shorts are forced to cover.
That dynamic is what analysts call a "short squeeze setup." The combination of a death cross and elevated short interest has in the past led to sharp, fast reversals. For XRP, the target for such a move is around a 25% gain from current levels, according to the chart formations.
Why July could bring a bounce
Timing matters. The pattern emerges after weeks of downward pressure that left XRP trading near key support zones. Those zones have held multiple times, and volume patterns suggest sellers are exhausting themselves. A relief rally in July would not be unusual — the month has historically seen periodic upswings after prolonged slides.
One market observer tracking the setup noted that the liquidation data is especially telling. When leveraged traders pile on one side of a trade, the market tends to punish them. Right now, the short side is crowded.
Longer-term view: $8 in sight
Beyond the immediate relief move, one analyst is looking further out. The same technical patterns that support a short-term rally also underpin a longer-term target near $8. That would represent a multi-hundred-percent gain from the current price, but the analyst cautioned it would require sustained buying and a shift in broader market sentiment.
The $8 target is based on previous resistance levels and Fibonacci extensions drawn from the 2023-2024 cycle. It is not a near-term prediction, but rather a potential destination if the relief rally gains traction and transforms into a full trend reversal.
Traders are watching the next few days closely. If XRP breaks above a key resistance level near the 50-day moving average, the relief rally could accelerate. If it fails, the death cross might still play out as a bearish signal, leading to another leg lower.
The unresolved question is whether the liquidation data will be enough to overpower the broader downtrend. That answer could come within the week.
