XRP Daily Liquidity Is Pointing To A Rally To $4, Analyst Explains What’s Going On
XRP’s liquidity structure on higher timeframes is in a situation where the path of least resistance could extend to the $4 level. The remark came from crypto analyst Bird in response to hourly and daily liquidity heatmaps shared by Cryptoinsightuk, which show a clear contrast between short-term and higher-timeframe liquidity positioning. At the time of writing, XRP is trading around $1.45, still below the large liquidity clusters visible above the current price. According to Bird, that imbalance may not stay unresolved for long. Hourly Liquidity Cleared, Short-Term Volatility Reduced XRP’s liquidity heatmap on the hourly candlestick chart shows that much of the nearby liquidity below the current price has already been swept. The visible clusters around the $1.30-$1.50 range have all been cleared, meaning that the short-term stop hunts and liquidation pools have largely been cleared out. Related Reading: Analyst Predicts Bitcoin Price Surge To $500,000 As Ribbon Fractal Emerges According to Bird, this trend shows that hourly XRP liquidity is basically gone. This means there is less immediate incentive for XRP to stay around current levels on lower timeframes. When short-term liquidity dries up like this, the outlook is that the price will gravitate to areas where larger pools are untouched. Since the nearby liquidity has already been taken, the next logical target is now where there are larger concentrations of resting orders. As noted by the analyst, these resting orders are stacked all the way up past $4. XRP Hourly Liquidity. Source: @Cryptoinsightuk on X Daily Liquidity Stacked Above $4 Liquidity on the daily heatmap appears layered and dense above the current price, stretching through multiple resistance bands and extending above the $4 price level. The upper regions show heavy trading activity and visible liquidity clusters between $2.50 and $4.00, which is a reflection of a thick concentration of stop orders and resting interest. Related Reading: Bitcoin Final Sell-Off Coming? Analyst Says It’s Time To ‘Buckle Up’ In liquidity-based trading theory, price action is often drawn to areas where there are large position orders, especially when those zones have not yet been tapped. Bird described this higher-timeframe liquidity as stacked all the way up past $4, with the notion that the higher-timeframe liquidity is sitting there like a magnet. XRP Daily Liquidity. Source: @Cryptoinsightuk on X Bird also referenced a five-month breakdown in Bitcoin dominance. At the time of writing, the Bitcoin dominance is at 57.9%, down from 58.2% last week. This means Bitcoin has been steadily losing dominance. A decline in dominance is always due to capital rotation into altcoins. If that trend continues, XRP could easily become one of the best beneficiaries, particularly given its visible higher-timeframe liquidity targets. The analyst also noted that sentiment has not yet reached extreme lows. XRP, in particular, has maintained a relatively positive positioning among investors compared to other cryptocurrencies like Bitcoin and Ethereum. That combination of declining dominance and neutral-to-cautious sentiment can create conditions for XRP’s projected rally above $4. Featured image created with Dall.E, chart from Tradingview.com