Will XRP Drop First to Grab Liquidity Before Rallying?

In our last XRP analysis, we pointed out something interesting—the price had left liquidity below and was moving towards a demand zone

In our previous analysis of XRP, we highlighted an interesting observation. The price had managed to leave some liquidity below as it moved towards a demand zone that could potentially trigger a reaction.

At the same time, there was some liquidity above that was acting as an attractive target for the price to reach.

The question we posed was whether XRP would drop first to grab the liquidity below before rallying to the upside.

Personally, I would prefer to see the price dip into the demand zone, providing a better buying opportunity, before pushing up to clear the liquidity above.

However, as we all know, nothing is guaranteed in trading, and we are dealing with probabilities, not certainties.

Let’s take a look at the current price prediction for XRP and potential trade setups.

XRP Analysis: Observing the Demand and Supply Zones

Key XRP Price Levels to Keep in Mind

As we analyze the price action of XRP, here are some key levels to monitor:

Now, let’s move on to the price prediction.

As the price dropped below the lower timeframe levels, it encountered the demand zone, which successfully stalled the decline.

We can see that the sellers were becoming exhausted as the price moved lower, which is indicated by the lower trading volume and the smaller bodies of the candles.

At the same time, the buyers began to step in to defend the demand zone, which is evident from the increase in volume and the formation of a hammer candlestick pattern.

After bouncing off the demand zone, the price rose and tested the Fib level, where the sellers intervened once again.

However, even though the sellers managed to push the price lower, they were unable to break through the Fib level, which is a crucial aspect to consider.

Moreover, we can observe that the price is likely to stall at the same rate as it increases. For instance, if the price increases rapidly, we can expect it to decrease at a similar pace.

But let’s be clear—this is not financial advice. The market can act in any way it chooses, and while these scenarios are probable, none of them are guaranteed with 100% certainty.

Final Thoughts: Trading with Intelligence, Not Emotions

If the scenario for XRP plays out in the way we’ve described, we might see the following:

However, if the market takes an unexpected turn, there’s no need to panic. Simply adapt and respond accordingly. That’s what distinguishes intelligent traders from those who trade emotionally.

Let’s see how this scenario unfolds. What are your thoughts on the next move for XRP?