- XRP has tapped into a key M30 demand zone and reacted
- Liquidity remains above and below—price could grab one before making a move
- Risk management is key—protect trades by setting positions to breakeven
In our previous analysis of XRP, we highlighted the liquidity resting above the price, visible through a trendline. At the same time, we noted an interesting demand zone below, although with some liquidity sitting underneath it.
Now, as we see, XRP has just tapped into our M30 demand zone and reacted accordingly.
However, before dropping lower, XRP appears to have left additional liquidity above. Moreover, on the M15 timeframe, there’s another demand zone that could trigger a strong reaction.
That said, given the liquidity still resting below, I would personally protect any long position early by setting it to breakeven.
That’s just my take—let’s dive deeper into XRP’s price action and potential scenarios.
XRP Analysis: A Liquidity-Driven Market
Trendlines and Liquidity: What You Need to Know
Trendlines are often seen as entry points, but I prefer to look at them as liquidity zones.
This is because many traders place stop-loss orders above or below these levels, making them attractive areas for price to revisit.
Right now, XRP has formed a clear trendline liquidity above, and price might still want to take those levels out before making a decisive move. At the same time, we have an M15 demand zone that could spark another bullish reaction.
Possible Scenarios for XRP
- Bullish Scenario: XRP could push higher to take out the liquidity above before reversing downward. If that happens, it might retest the demand zone and present another buying opportunity.
- Bearish Scenario: If XRP fails to hold the current demand zone, we might see a deeper retracement to grab liquidity from lower levels before rebounding.
- Sideways Consolidation: XRP could also move in a range for a while before making its next big move. In this case, watching key liquidity levels is essential.
Final Thoughts
One thing is certain: no one can predict price movements with 100% certainty. Markets often behave unpredictably, and while these scenarios are based on technical analysis, XRP could still take an entirely different path.
For those actively trading XRP, the key is to manage risk effectively—protect profits, set stop-losses, and stay adaptable.
To all my frequent readers, thank you for your continued support! Wishing you all the best in the world of crypto trading.
