At the time of writing, XRP is trading around $1.45, still below the major liquidity clusters visible above the current price. According to Vogel, that imbalance might not remain unsolved for a long time.
Hourly liquidity is gone, short-term volatility is reduced
XRP’s liquidity heatmap on the hourly candlestick chart shows that much of the nearby liquidity is below the current price has already been swept. The visible clusters around $1.30-$1.50 have all been cleared, meaning the near-term stop hunts and liquidation pools have largely been cleared.
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According to Bird, this trend shows that Hourly XRP liquidity has effectively disappeared. This means there are less direct incentives for XRP to remain around current levels on lower time frames. When short-term liquidity dries up in this way, the prospect is that price will rebound into areas where larger pools remain untouched.
Since nearby liquidity has already been taken, the next logical target is now where there are larger concentrations of resting orders. As the analyst noted, these rest orders are stacked up past $4.
XRP hourly liquidity. Source: @Cryptoinsightuk on X
Daily liquidity stacked above $4
Liquidity on the daily heatmap appears layered and dense above the current price, spanning multiple resistance bands and reaching above the $4 price level. The higher regions show heavy trading activity and visible liquidity clusters between $2.50 and $4.00, reflecting a thick concentration of stop orders and resting interest.
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In liquidity-based trading theory, price action is often attracted to areas where there are large position orders, especially when those zones have not yet been tapped. Bird described this higher time frame liquidity as having piled up past $4, with the idea that the higher time frame liquidity sits there like a magnet.
XRP daily liquidity. Source: @Cryptoinsightuk on X
Bird also referred to a collapse of Bitcoin dominance in five months. At the time of writing, Bitcoin dominance stands at 57.9%, up from 58.2% last week. This means Bitcoin is steadily losing its dominance. A decrease in dominance is always due to capital rotation into altcoins. If this trend continues, XRP could easily become one of the top beneficiaries, especially given its visible longer-term liquidity goals.
The analyst also noted that sentiment has not yet reached extreme lows. XRP in particular has done that maintained a relatively positive positioning among investors compared to other cryptocurrencies such as Bitcoin and Ethereum. That combination of declining dominance and neutral to cautious sentiment can create conditions for this XRP’s expected rally above $4.
Featured image created with Dall.E, chart from Tradingview.com
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