- The recent act of sell-side liquidity sweep demonstrates XRP’s potential for a bullish shift which could lead to increased price values.
- The price requires support at $2.2220 to continue upward while facing potential resistance barriers at $2.9990 and $3.4000 for succeeding price growth.
- XRP’s price movement depends heavily on proper funding management as excessive leverage leads to ongoing market liquidations.
XRP’s price action has drawn increased attention following a recent sweep of sell-side liquidity, signaling a potential bullish reversal. The combined technical analysis data demonstrates a structural change in the market that implies rising prices are likely to occur. Traders watch price movements near $2.2220 because key support levels persist and the identified order block stands at this level.
The daily timeframe shows a substantial movement that swept through sell-side market liquidity. Market makers appeared to liquidate their weak positions during the period where prices ranged from $2.10 to $2.20. The movement in prices supports the bullish structure transformation which indicates a potential market trend change.
XRP Key Levels to Monitor
Analysts have identified an order block in the $2.2220 region, which may serve as a key support zone. . If XRP continues to hold its position above this level then it will increase the chances of breaking out to higher targets. Two main resistance zones exist at $2.9990 and $3.4000 where traders could aim to take profits upon an upward price movement.
Conversely, a failure to hold the order block could see price action revisiting lower levels. Breaking down from $2.20 invalidates the bullish outlook and opens space for possible price decreases.
A sustained buying momentum that retains its position above the order block could push XRP toward $2.9990 then potentially drive the price toward $3.4000 provided buying intensity remains strong. The failure of price to maintain support at the important zone should trigger increased selling activity that could push XRP’s price back into lower liquidity regions under $2.20.
XRP Liquidation Trends and Market Outlook
The XRP Total Liquidations Chart indicates that mid-November launched a substantial upward trend hitting heights past $3.00 in early January until prices fell rapidly while remaining within $2.00-$2.50. Short liquidations reached their highest point during late November and early December whereas long liquidations achieved maximum points in early February and early March which corresponded with price drops.
Source:Coinglass
These liquidation patterns highlight the risks of excessive leverage, as sharp market swings led to forced closures of both short and long positions. The market analysis shows that XRP could try to reach the $3.00-$3.50 resistance area if it stays supported within the $2.00 to $2.50 range. The future direction of XRP heavily depends on its liquidity mechanics which causes traders to approach market assessments with caution.
