[DigitalToday reporter Yoonseo Lee (이윤서)] Short-position liquidations surged in the XRP market after the U.S. June producer price index (PPI) came in below expectations.

On July 15 (local time), blockchain media outlet U.Today reported that over the past 24 hours, short liquidations in XRP far exceeded long liquidations, recording a 331 percent liquidation imbalance.

The move began with the June PPI released by the U.S. Department of Labor. The monthly reading came in at minus 0.3 percent, below the market forecast of 0.0 percent, and the annual rate of increase also slowed to 5.5 percent. As wholesale price pressures eased, concerns about Federal Reserve (Fed) tightening subsided, and the dollar index (DXY) fell to 100.562.

Funds then moved into risk assets. Bitcoin at one point rose above $65,244, and ether climbed into the $1,900 range. XRP also followed the broader rise in major cryptocurrencies, breaking successive key resistance levels on the four-hour chart.

Technical signals were also bullish. A bullish divergence had formed in XRP's relative strength index (RSI), suggesting waning selling pressure. XRP then broke through $1.0964 and $1.1127 with strong bullish candles before briefly settling near $1.1261. In the process, it also broke above a long-term trendline that had been in place since mid-May.

The biggest hit fell on investors who used leverage to bet on a decline. CoinGlass data showed XRP short liquidations totaled $2.56 million over the past 24 hours. Long liquidations over the same period were limited to $593,260. Short liquidations were 4.31 times larger than long liquidations, and the liquidation imbalance was tallied at 331 percent.

The short squeeze acted as a factor that amplified the price rise. As positions betting on a decline were forcibly closed, additional buying demand emerged, and XRP cleared successive short-term resistance zones. The market is paying attention to the point that this rebound is not merely a short-term spike, but is tied to a break from a downtrend that has persisted for months.

A key point to watch is whether the broken price levels take hold as support. If XRP holds above the trendline it crossed and the $1.0964 to $1.1127 area, it could function as a key support zone during the third quarter of 2026. If the recovery in risk appetite driven by inflation data weakens, the durability of this sharp rise could also be tested again.