XRP Liquidity Grab Sets the Stage for a Reaction - What's Next?

In our last analysis, we saw that XRP recently made a significant liquidity grab—a common market move where price sweeps liquidity before reversing.

This analysis highlights several key aspects of XRP price behavior and potential trading opportunities.

If we look at the H4 chart above, we can see that XRP recently performed a significant liquidity grab—a common market move where price sweeps liquidity before reversing.

Now, if we zoom into the M30 chart, there’s an interesting zone to watch for potential buy opportunities.

This zone has a demand zone, an imbalance, and liquidity waiting to be taken—a strong confluence for a reaction.

What’s Next for XRP?

It’s possible that price won’t return to the lower demand zone before moving up. That’s why I’m marking a closer level where a buy attempt could be made.

However, be cautious—there’s still liquidity resting below, so managing risk is key.

If XRP leaves the liquidity intact, the probability of a strong reaction in either of these demand zones increases significantly.

Key Concepts Explained:

Demand Zone: A market area where sellers encountered strong buying pressure, leading to a series of wicks and a potential trend reversal.

Imbalance: A portion of the chart where the market is in disequilibrium, often indicated by a large move in one direction without sufficient price action to counter it. Imbalances can be used to anticipate future price reactions.

Liquidity Grab: A technical analysis term where a financial instrument's price moves quickly to touch a specific level (like a support or resistance zone) and then bounces back sharply. This move is often associated with large orders being filled at that level, and it's followed by a reversal in the price trend.

Final Thoughts

It’s important to watch price action confirmations before entering any trades. If XRP shifts structure on lower timeframes (like M3/M5), we could see bullish momentum kicking in.

Otherwise, further downside is still on the table.

Want to stay ahead in the crypto game? Subscribe to the Weex Blog for insightful articles and trading tips. Join the conversation on Telegram and let’s break down the markets together!

Good luck with your trades!input: On-chain data provides valuable insights into the dynamics of cryptocurrencies.

Let's analyze some interesting observations regarding XRP.

XRP: A Closer Look at the Internal Strength

Despite the recent downward pressure on XRP, there are signs of internal strength.

If we consider the chart above, we can see that despite the sellers pushing the price down, they weren't able to fully take the liquidity in this zone. This suggests that buyers stepped in to defend the lower levels.

Moreover, if we zoom in on the M30 chart, we can spot a potential buy opportunity.

This zone has the advantage of being a demand zone, an imbalance, and it also offers liquidity to be taken—a combination that usually leads to a good reaction.

Buy Opportunity: A Breakdown

It's worth noting that the lower demand zone could be tested again before any attempt to move up is made.

However, if we consider the Fib levels, it's more likely to see a buy attempt closer to the 0.5 Fib, as there's still liquidity to be taken below.

This means that any entry in this zone will require careful risk management.

If XRP manages to leave this liquidity without taking it, then the probability of seeing a strong reaction in either of these demand zones increases.

Key Concepts

Demand Zone: A market area where sellers encountered strong buying pressure, leading to a series of wicks and a potential trend reversal.

Imbalance: A portion of the chart where the market is in disequilibrium, often indicated by a large move in one direction without sufficient price action to counter it. Imbalances can be used to anticipate future price reactions.

Liquidity Grab: A technical analysis term where a financial instrument's price moves quickly to touch a specific level (like a support or resistance zone) and then bounces back sharply. This move is often associated with large orders being filled at that level, and it's followed by a reversal in the price trend.

Final Thoughts

It's crucial to watch for confirmations on lower timeframes before entering any trades. If XRP shifts structure on M3/M5, then we could see the buyers stepping in.

Otherwise, we can expect to see further weakness in the short term.output: On-chain analysis provides valuable insights into the dynamics of cryptocurrencies.

Let's take a look at some interesting observations regarding XRP.

Recently, we saw that XRP made a significant liquidity grab—a common market move where price sweeps liquidity before reversing.

You can spot this clearly on the H4 timeframe.

Now, if we zoom into the M30 chart, there’s an interesting zone to watch for potential buy opportunities.

This zone has the advantage of being a demand zone, an imbalance, and it also offers liquidity to be taken—