[Digital Today reporter Yoonseo Lee] XRP has broken a key resistance level, rapidly widening the loss zone for short sellers.

U.Today, a blockchain media outlet, reported on Wednesday that bearish bets had accumulated as XRP stayed in a prolonged range between $1.02 and $1.06. It later surged, triggering mass liquidations of short positions.

The move coincided with a broader rally in the crypto market. Over the past 24 hours, more than $634 million in margin positions across the crypto market were forcibly liquidated, and about 73 percent of total losses were concentrated in short positions, based on CoinGlass tallies.

The skew was larger in XRP. About 81 percent of XRP-related losses came from positions betting on a decline. Although one round of liquidations has already occurred, the 'maximum loss' price area for large XRP short positions remains above the current price at $1.30953, with $5.79 million concentrated in that zone.

Some defensive orders at mid-range price levels also appeared to have been triggered during the rise. After XRP broke through $1.0525, which had been a key resistance level, and moved up to the current price area, protective stop-loss orders for some short positions were executed first.

Still, in terms of the short-term move alone, signs of overheating are also being detected. Technically, the resistance break led the rise, but overbought indicators already point to localized overheating, raising the possibility that upside momentum could pause for a breather. In the current range, that suggests buying may be more likely to go through a brief correction than to immediately drive further gains.

That makes the area around $1.065 the first near-term test. After a small pullback to this price level, which was a previous resistance level, whether it can be turned into support could determine the next direction. If this level holds, XRP would secure a footing to aim again at $1.30953 in the medium term.

Ultimately, this sharp XRP jump is seen as a flow closer to a supply-demand shift tied to short liquidations than a simple price rebound. In the broader market, the share of losses from shorts reached about 73 percent, and within XRP it rose to about 81 percent. Against this backdrop, whether $1.065 holds as support and whether the distance to $1.30953 narrows have emerged as key near-term points to watch.