The XRP price is showing strong indications of a potential breakout, with a growing liquidity imbalance that could propel the cryptocurrency towards $4, according to an analyst. Currently hovering around $1.5, which is more than 180% below the target, XRP would need significant bullish momentum and a shift in market sentiment to reach this level. Read more.
Liquidity Structure Signals XRP Price Rally To $4
In a recent post, XRP Ledger (XRPL) developer Bird highlighted that XRP is well-positioned at current levels, with a liquidity structure favoring an aggressive upside move. Bird explained that most of the liquidity below the current price has been cleared, reducing the chances of an immediate drop to lower levels. Read more.
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On the contrary, Bird pointed out that deep liquidity, particularly in the dark red zones on the chart, is stacked above the current price, extending towards $4. These areas are likely filled with short positions, leveraged trades, and stop levels.
Bird emphasized that markets tend to gravitate towards liquidity due to the concentration of orders in those areas. As XRP price moves into upper liquidity zones, short sellers may be forced out of their positions, leading to a cascade of buying pressure and pushing prices higher. Read more.
Bird noted that liquidations often generate buying pressure, leading to a cycle of closing short positions, increasing volatility, and driving prices higher. XRP has a history of rapid, aggressive rallies once momentum from liquidations builds up, potentially propelling the price towards $4 swiftly.
XRP Approaches Make Or Break Zone
In another analysis, market analyst ‘Master of Crypto’ shared insights into XRP’s recent price behavior and outlook. He mentioned that XRP is approaching a crucial decision zone that could determine whether it enters a new bullish phase or continues its previous downtrend. Read more.
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After trading in a downtrend channel for weeks, XRP’s price is now testing the upper trendline of the structure. If the price breaks and holds above the line near $1.8 with strong volume, a surge towards $2.00 is highly likely.
On the other hand, if XRP faces rejection in this area, it could see a final pullback towards $1.4 before a potential breakout. The next move for XRP hinges on how it reacts to the $1.8 resistance level. Read more.
Featured image from Getty Images, chart from Tradingview.com