New data indicates a significant shift in the market structure of XRP. Analysis shows that liquidity walls that traditionally hindered price increases have now disappeared, generating renewed interest in the cryptocurrency.
What Are Liquidity Walls and Why They Matter
Liquidity walls are areas on a trading chart where large buy or sell orders are concentrated. These zones act as barriers that either support the price or hinder its increase. Previously, strong sell-side liquidity walls formed around the $2.59 level, limiting XRP's growth. However, these barriers have now been completely cleared.
Price Action and Technical Analysis
Currently, XRP is trading at $2.73, up 4.2% in the past 24 hours. The cryptocurrency has successfully broken through previous resistance levels, and analysts are eyeing $3.40 as the next target. A break above this level could lead to prices reaching $5.00 in a favorable scenario. Technical analysis shows strong momentum, with widening Bollinger Bands indicating increased volatility.
Market Sentiment and Institutional Drivers
This price movement occurs amid broader bullish sentiment in the crypto market and rising institutional interest in XRP. A significant catalyst is the upcoming launch of the ProShares XRP ETF on July 18, which is generating additional interest. Furthermore, Ripple's expansion into stablecoins and CBDCs, including the launch of RLUSD, is supporting XRP's long-term fundamentals.
Given the current trends, XRP may be poised for substantial growth. The elimination of liquidity walls and positive technical indicators create favorable conditions for increased interest from institutional and retail investors.
