Foreign media reports suggest that XRP's recent price movements are driven more by liquidity structure than by market sentiment. The report cites BankXRP and market analysts as saying that the current price is caught between two key liquidity zones, and the short-term direction depends on which side is triggered first.
The $2.26 billion liquidation zone above is attracting attention.
The report mentions that there is a liquidation concentration zone of approximately $2.26 billion above the current XRP price. This area contains a large number of leveraged positions and is therefore considered an important point to watch for short-term price movements.
If the price moves upwards to this area, short covering could amplify volatility and push the price further towards this range. Based on this, the article argues that XRP's recent repeated narrowing below this area reflects the market's anticipation of a new liquidity trigger.
The short-term trading range has narrowed to $1.30 to $1.48.
The report states that XRP has been fluctuating between $1.30 and $1.48 recently. The $1.34 to $1.40 range is considered a relatively liquid area, where stop-loss orders may be concentrated, and the price is likely to repeatedly test this area when volatility increases.
According to CoinCodex data, XRP is trading at $1.33, near the lower end of its short-term trading range. The article suggests this indicates the price is still under some downward pressure but has not yet broken out of its current consolidation pattern.
The $1.20 area below is also key.
Market analyst Cryptoinsightuk believes that XRP may test deeper liquidity levels before a sustained rebound, with a key area around $1.20.
Based on this assessment, prices may first stabilize or rebound briefly within the current range, before sweeping downwards into areas of lower liquidity. The article describes this type of movement as a passive liquidation of highly leveraged positions, rather than a one-sided fluctuation driven by sentiment.
The report also noted that the 4-hour chart showed signs of oversold conditions, indicating that downward pressure had accumulated, but the correction may not yet be over. If the price subsequently falls to around $1.20 without a corresponding significant weakening of momentum, the market may further focus on whether a bullish divergence has formed.
In addition to its price structure, the report also cited data showing that while the broader crypto market experienced an outflow of approximately $1.47 billion, XRP still recorded an inflow of about $31.8 million. Meanwhile, Binance's liquidity reportedly fell to its lowest level since 2020. Based on this, the article argues that XRP's next move is more likely to be determined by liquidity distribution rather than random fluctuations.
