An analysis says a break by XRP above the $1.30 to $1.31 range could trigger a cascade of short-position liquidations worth about $617.7 million.

On Oct. 29, blockchain media outlet Decrypt reported that a CoinGlass liquidation heatmap shows a large short-liquidation zone in Binance’s XRP/USDT derivatives market between $1.30545 and $1.31023.

XRP is currently trading around $1.25 to $1.29. The liquidation zone sits about 1 percent above the current price and spans just 0.4 percent. That means a small additional rise could force a large number of short positions to close at once.

Liquidation interest is concentrated in three bands. About $229.7 million is clustered at $1.30545, about $205.9 million at $1.30784 and about $182.1 million at $1.31023. Combined, the total is about $617.7 million.

CoinGlass views price levels with heavy concentrations of leveraged positions as potential "price magnet" zones, meaning the market price could be pulled toward them. The heatmap, however, only shows areas where activity may increase and does not guarantee XRP will reach those prices or that all liquidations will occur.

If the price moves above $1.30545, the first liquidations could follow and push XRP toward $1.30784. A break above $1.30784 could then trigger additional forced buying and keep upward pressure in place up to $1.31023. This is a typical short-squeeze path, in which short liquidations feed into buy orders and amplify the rise.

Larger liquidation zones also sit higher up. Around $255.3 million is positioned at $1.34608 and about $227.2 million at $1.34847 as individual short-liquidation areas. Looking more broadly, about $1.67 billion in short-liquidation leverage is spread across nearby levels in the $1.34608 to $1.3652 range.

That has led to suggestions that if XRP clears the initial $1.30 to $1.31 area, it could head toward the larger liquidation cluster. Entering that zone could trigger additional forced buying and speed up the rise.

There are limits to interpreting the figures. CoinGlass calculates leverage distribution from open interest and trading volume data rather than directly viewing an exchange’s full order book. As a result, the liquidation sizes shown on the heatmap are estimates, and the actual amounts could be smaller.

Technical resistance is also a factor. The main resistance zone is put at $1.35 to $1.42, which partly overlaps with the potential short-liquidation area of about $1.67 billion. Even if forced buying pulls XRP up to that range, selling pressure could slow the pace of gains or block further advances.

The key short-term question is whether XRP breaks through $1.30 to $1.31. The zone is close to the current price and has concentrated liquidation interest, raising the likelihood of short-term volatility. But if XRP fails to clear resistance at $1.35 to $1.42, any rebound driven by short liquidations could be limited.