The XRP price is flashing strong signs of a potential breakout, as one analyst points to a growing liquidity imbalance that could send the cryptocurrency racing toward $4. Currently trading near $1.5, which is more than 180% below that target, XRP would require substantial bullish momentum and a notable shift in market sentiment to reach this level.
Liquidity Structure Signals XRP Price Rally To $4
In a recent X post, XRP Ledger (XRPL) developer Bird said XRP is shaping up well at current levels, arguing that its broader liquidity structure now favors an aggressive upside move. Bird shared a detailed chart, explaining that most of the liquidity resting below the current price has already been cleared, reducing the likelihood of an immediate move to lower levels.
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On the other hand, deep liquidity, particularly in the dark red zones on the chart, remains stacked above, extending toward $4. Those areas, he noted, are likely packed with short positions, leveraged trades, and stop levels.
While emphasizing that the XRP price itself does not have any specific direction or target at this current time, Bird stated that markets naturally gravitate toward liquidity because the largest concentration of orders is often found there. As the XRP price pushes into upper liquidity zones, the analyst noted that short sellers may get forced out of their positions. Since closing a short requires buying back XRP at higher prices, that process can add fresh upward pressure to the market.
Bird noted that liquidations typically create buying pressure, which can push prices higher. As prices rise, more short positions are closed, creating a self-reinforcing cycle. Moreover, as momentum grows, retail traders often jump in, further increasing volatility and driving prices up even faster.
According to the analyst, XRP has historically shown the ability to produce rapid, aggressive rallies once a liquidation-driven momentum builds. If prices begin to tap into the areas with stacked liquidity, a move toward the $4 region could happen fast, fueled by closed short positions and expanding market participation.
XRP Approaches Make Or Break Zone
In a separate analysis, market analyst ‘Master of Crypto’ shared new insights into XRP’s recent price behavior and potential outlook. He stated that the cryptocurrency is currently approaching a major decision zone that could determine if it enters a fresh bullish phase or continues its previous downtrend.
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According to the analyst, after weeks of trading in a clear downtrend channel on the chart, XRP’s price is now testing the upper trendline of the structure. He predicts that if price breaks and holds above this line near $1.8 with strong volume, then a surge toward $2.00 is highly probable.
On the flip side, Master of Crypto forecasts that if XRP is rejected in this area, the cryptocurrency could experience a final pullback toward $1.4 before a real breakout. The analyst has said that XRP’s next move depends entirely on how its price reacts to the $1.8 resistance level.
Featured image from Getty Images, chart from Tradingview.com
