- XRP reacted to a demand zone but grabbed liquidity below. Could the next move be a strong rebound?
- A lower demand zone is still in play. If price reacts here, we may see liquidity above get taken
- Timing is everything! XRP’s structure suggests potential upside, but risk management is key
In our last analysis, we identified two key demand zones where XRP could react before targeting liquidity above. So, what happened?
The price initially reacted to the first demand zone, giving a solid move that could have allowed traders to secure break-even positions.
However, instead of continuing upward, XRP dipped lower, taking liquidity below.
But here’s the interesting part—new liquidity has now formed underneath, increasing the probability of a stronger reaction at the lower demand zone.
This setup could still lead to a liquidity grab above if conditions align.
Key Levels to Watch
- First Demand Zone (Tested): XRP bounced here but later dropped.
- Lower Demand Zone (Untested): With liquidity below, a stronger reaction is possible.
- Liquidity Above: If XRP gains momentum, this could be the next target.
Understanding Market Structure and Liquidity
Price movements are not random—institutions and whales play the long game, pushing price to grab liquidity before making their next move.
Many retail traders panic sell or buy at the worst times, which is why it’s crucial to understand how liquidity works.
What’s Next for XRP?
Could we see XRP react at the lower demand zone before moving higher? It’s a strong possibility, but nothing is ever certain in trading. The market is unpredictable, and scenarios can change quickly. Managing risk and adapting to price action is key.
Remember: These are possible setups, not guaranteed outcomes. Always have a plan in place, and don’t trade based on emotions.
Final Thoughts
XRP has shown clear liquidity grabs, and the market structure suggests that a reaction at the next demand zone could be a strong scenario. However, confirmation is essential—watch price action closely before making any decisions.
What do you think? Will XRP move up after testing the lower demand zone, or is more downside ahead?
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
