XRP’s broader liquidity structure suggests the path of least resistance could lead toward the $4 level. This observation comes from crypto analyst Bird, who was reviewing hourly and daily liquidity heatmaps shared by Cryptoinsightuk. The maps highlight a clear difference between short-term and longer-term liquidity. Currently trading around $1.45, XRP remains below significant liquidity clusters visible at higher prices. Bird believes this imbalance is unlikely to persist.
Hourly Liquidity Cleared, Reducing Short-Term Volatility
The hourly chart shows that nearby liquidity below the current price has largely been absorbed. Clusters in the $1.30-$1.50 range have been cleared, indicating that recent stop-hunts and liquidation pools have mostly been exhausted. According to Bird, this means hourly liquidity for XRP is essentially depleted, reducing the immediate incentive for the price to hover around current levels on shorter timeframes. When short-term liquidity dries up, price tends to move toward areas with larger, untouched pools of orders. The analyst notes that these resting orders are stacked all the way up past $4.
Daily Liquidity Concentrated Above $4
On the daily chart, liquidity appears dense and layered above the current price, extending through multiple resistance bands and beyond the $4 level. Significant trading activity and visible liquidity clusters are seen between $2.50 and $4.00, reflecting a heavy concentration of stop orders and resting interest. According to liquidity-based trading theory, price is often drawn to such areas where large position orders remain untapped. Bird describes this longer-term liquidity as acting like a magnet, stacked up past $4.
Bird also points to a five-month decline in Bitcoin dominance, which currently stands at 57.9%, down from 58.2% last week. This steady decrease indicates capital is rotating into altcoins. If this trend continues, XRP could be a major beneficiary, especially given its clear liquidity targets on higher timeframes. The analyst adds that market sentiment has not yet reached extreme lows, and XRP has maintained a relatively positive stance among investors compared to assets like Bitcoin and Ethereum. This mix of declining Bitcoin dominance and neutral-to-cautious sentiment could set the stage for XRP’s potential rally above $4.
Frequently Asked Questions
FAQs XRP Daily Liquidity Potential Rally to 4
Beginner Questions
1 What are Daily Liquidity Points
Daily Liquidity Points refer to the volume of XRP being traded on a daily basis High liquidity means a lot of XRP is being bought and sold easily which is a key indicator of a healthy and active market
2 Why is high daily liquidity important for XRP
High liquidity makes it easier to buy or sell XRP without drastically affecting its price It suggests strong investor interest and market stability which are often precursors to a significant price move
3 What does a rally to 4 mean
A rally is a rapid increase in price A rally to 4 means some analysts predict the price of one XRP could rise to 4 USD from its current price representing a substantial gain
4 Who is the analyst making this prediction
The specific analyst wasnt named in your prompt but such predictions are commonly made by market technicians or crypto strategists who analyze charts trading volumes and market trends
5 Is this prediction guaranteed to happen
No Price predictions in cryptocurrency are never guaranteed They are educated forecasts based on current data and patterns but the market is highly volatile and influenced by many unpredictable factors
Intermediate Advanced Questions
6 How does daily liquidity specifically point to a potential rally
Analysts look for a consistent or increasing high daily trading volume alongside a consolidation or gradual price increase This pattern can indicate that smart money or large investors are accumulating XRP without spiking the price potentially setting the stage for a major upward breakout
7 What other factors besides liquidity would support a rally to 4
Key factors include
Positive resolution of the SEC vs Ripple lawsuit A clear legal win for Ripple
Increased adoption More banks or financial institutions using Ripples OnDemand Liquidity service
Overall crypto market bull run Bitcoin and the broader market entering a bullish phase
Major exchange relistings Major platforms like Coinbase fully relisting XRP for trading
8 What are common problems or risks that could prevent this rally
Unexpected negative legal developments in the ongoing SEC case