XRP has recently rebounded rapidly from a low point to around $1.30. Analysts believe this rally is very likely due to short-sellers unwinding their positions from earlier.
In simple terms, some people who were bearish on XRP found that the price did not keep falling and instead started rising, so they rushed to buy back XRP to cut their losses. This triggered short covering and further pushed the price higher.
However, after the Federal Reserve’s rate hikes, its stance remains relatively hawkish, and inflation pressure has not fully disappeared. Therefore, whether XRP can continue to rise will depend on whether it can break through key resistance levels—it’s not enough to judge that the trend has reversed based on this rebound alone.
In simple terms, some people who were bearish on XRP found that the price did not keep falling and instead started rising, so they rushed to buy back XRP to cut their losses. This triggered short covering and further pushed the price higher.
However, after the Federal Reserve’s rate hikes, its stance remains relatively hawkish, and inflation pressure has not fully disappeared. Therefore, whether XRP can continue to rise will depend on whether it can break through key resistance levels—it’s not enough to judge that the trend has reversed based on this rebound alone.