Analysts are studying a recent liquidity heatmap of XRP, which shows significant clusters of short positions placed above current prices.
Overview of XRP Liquidity
According to a recent liquidity heatmap from Coinglass, there is a notable build-up of short-side liquidity above current XRP price levels. These zones provide potential resistance levels, with notably higher liquidity located between $3 and $4.5.
Chart Analysis and Price Movements
The heatmap plots both historical price action and liquidity density from mid-May to early August. Areas on the chart with concentrated liquidity are positioned above current trading levels, which may indicate possible price movement. Specifically, in mid-July, XRP reached a peak of $3.65, followed by a correction to $2.99 and a quick recovery.
Prospects and Predictions for XRP
The concentration of liquidity above $4.5 may imply reduced resistance, creating opportunities for further price growth for XRP. Analysts note that with strong bullish momentum, these zones could lead to short position closures, increasing buying pressure.
The analysis of liquidity density indicates that XRP could experience significant price movement if levels of $4.5 are reached. This creates potential opportunities for traders and investors monitoring the situation.
