XRP has as soon as once more traded straight right into a value zone that a number of merchants have come to acknowledge as a liquidity pocket. This space has acted as a magnet for value since December 2024, inflicting repeated exams and reactions that stand out clearly on the worth chart. In a current technical breakdown shared on X, crypto analyst ChartNerd highlighted how XRP has repeatedly made contact with this liquidity pocket over the previous yr and the cryptocurrency is likely to be approaching a aid bounce.
Liquidity Pocket: Help Or Springboard?
Technical evaluation of XRP’s value motion exhibits that the cryptocurrency is now buying and selling inside a liquidity zone that has acted as a help vary since December 2024. This liquidity zone, which spans the vary from $1.90 to $1.75, has acted as a value magnet for a lot of months. Even after reaching its all-time excessive of $3.65 in July 2025, XRP entered right into a multi-month correction that finally discovered help at this liquidity zone.
In accordance with the evaluation, almost each prior go to to this zone was adopted by some type of aid, particularly when momentum indicators aligned. The final time XRP returned to this degree, it slowed down its decline and finally bounced again above $2.4 in early January.
Nonetheless, the newest push downwards performed out as a 20% decline after a rejection on the $2.40 zone in early January, which has basically pushed the XRP value motion again to buying and selling inside this liquidity vary and has began to point out tentative stabilization.
To deliver additional affirmation to the setup, the analyst included the day by day Stochastic RSI under the worth chart. This momentum indicator, which measures relative power and situations of overbought or oversold stress, is at present sitting in deeply oversold territory in line with the chart. These oversold situations within the Stoch RSI aligned with rebounds off this identical liquidity pocket.
XRP Worth Chart. Supply: @ChartNerdTA On X
What Occurs Subsequent?
If historical past repeats itself, the repeated exams of this liquidity pocket and accompanying oversold alerts is likely to be clearing the street for a bounce. If XRP was beneath this pocket and rejecting at this degree, that will be bearish. Holding it as help for an extended period factors to a powerful help power on this space.
That stated, there may be one other risk that the reverse might occur. Ought to XRP break decisively under this zone with robust promoting stress, the technical setup would shift from supportive to bearish and depart the worth motion trending downwards.
Buying and selling exercise hints that current consumers could also be in a tricky spot, as a result of the combination of holders now resembles the early 2022 construction when value stress was excessive. Meaning many members could also be under their breakeven price foundation, and this will construct promoting stress over time if costs fail to maneuver increased.
Featured picture created with Dall.E, chart from Tradingview.com
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