XRP Daily Liquidity Points To Rally To $4, Analyst Explains What’s Happening
Liquidity structure of XRP in high periods it is in a situation where the path of least resistance can extend to the $4 level. The comment came from crypto analyst Bird in response to hourly and daily heat maps shared by Cryptoinsightuk, which show a clear difference between short-term and long-term liquidity positions.
At the time of writing, XRP is trading around $1.45, still subject to the large liquidity pools seen above the current price. According to Bird, that inequality may not occur remain unresolved for a long time.
Hourly Liquidity Cleared, Short-Term Volatility Reduced
The XRP liquidity heatmap on the hourly candlestick chart shows that most of the currency is close below the current price. it has been swept away. Visible clusters around the $1.30-$1.50 range have all been cleared, meaning the hunt for short stops and closing pools has largely been eliminated.
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According to Bird, this practice shows that XRP liquidity per hour is essentially non-existent. This means there is little immediate incentive for XRP to stay at current levels during low periods. If short-term money dries up like this, the theory is that the price will reach areas where the great lakes have not been touched.
With the near term currency taken, the next logical target now is when there is a large concentration of stop orders. As noted by the commentator, these rules of relaxation are such cumulative up to $4.
XRP Hourly Liquidity. Source: @Cryptoinsightuk on X
Daily Liquidity Stacked Above $4
Liquidity on the daily heat map appears thick and dense above the current price, extending through multiple resistance bands and extending above the $4 price level. The regions above show heavy trading activity and virtual currency clusters between $2.50 and $4.00, which is indicative of concentration of stop orders and resting interest.
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In liquidity-based trading theory, price action is often drawn to areas where there are large position orders, especially when those areas are untouched. Bird described this peak as having piled up past $4, with the idea that the peak is sitting there like a magnet.
XRP Daily Liquidity. Source: @Cryptoinsightuk on X
Bird also referred to the five-month break in Bitcoin’s dominance. At the time of writing, Bitcoin dominance is at 57.9%, down from 58.2% last week. This means Bitcoin it has been gradually losing dominance. Declining dominance is always caused by circulating money in altcoins. If that trend continues, XRP could easily be one of the best gainers, especially given its long-term target for payouts.
The analyst also noted that sentiment has yet to hit rock bottom. XRP, in particular, has it has kept a relatively good position among investors compared to other cryptocurrencies such as Bitcoin and Ethereum. That’s a combination of declining dominance and a neutral to cautious sentiment can create conditions for The proposed XRP rally is above $4.
The featured image was created with Dall.E, a chart from Tradingview.com
