- Per analyst Cryptoinsightuk, XRP is likely to sweep down toward $1.20 in liquidity.
- Analyst CW argued that XRP’s recent slide may not actually be from real selling pressure.
- CW said open interest and net long positions are still climbing, despite the price drops.
XRP traders are sounding the alarm that there could be one more sharp drop before any real bullish move. Several XRP analysts on X pointed to rising risks as XRP continued struggling beneath key resistance levels around the $1.30-$1.40 zone.
According to analyst Cryptoinsightuk, who said XRP has moved into what he calls deep liquidity zones on shorter timeframes. According to his analysis, in the short term, XRP is likely to sweep down toward $1.20 in liquidity before possibly bouncing back harder.
Cryptoinsightuk called out the growing downside liquidity clusters showing up on the hourly charts, warning that markets often go after those zones before turning around.
He also noted that XRP is oversold on the 4‑hour chart. For a perfect bullish setup, the analyst wants to see a final flush to $1.20, followed by a bullish divergence in which price hits a lower low while the RSI prints a higher low.
That kind of divergence usually means that even though the price is still falling, the selling pressure is starting to fade.
Artificial Decline or Real Capitulation?
Meanwhile, another analyst known as CW argued that XRP’s recent slide might not stem from real selling pressure, calling the decline artificial. The analyst said that even as XRP’s price drops, open interest and net long positions are still climbing.
Usually, when the price drops and open interest falls, it means traders are bailing out. However, when open interest rises during a price drop, it often signals that leveraged positions keep piling on. CW thinks that could mean the sell‑off is more about market positioning and liquidity games than a broad investor capitulation.
Adding to the tension, analyst CasiTrades called XRP’s situation a “critical moment,” underscoring the anticipation building among XRP traders.
From a technical perspective, traders are now closely watching several key levels. This includes $1.20 as a major liquidity and support zone, $1.00 as a psychological and daily liquidity area, and the $1.30-$1.40 zone as immediate resistance.
Related: Binance Records 122M XRP Outflows in Whale Transactions, First 100M+ Day Since February
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