Liquidity Structure of XRP on higher timeframes finds itself in a situation where the path of least resistance could extend up to the $4 level. The remark came from crypto analyst Bird in response to hourly and daily liquidity heatmaps shared by Cryptoinsightuk, which show a clear contrast between short-term and longer-term liquidity positioning.
At the time of writing, XRP is trading around $1.45, still below the large liquidity clusters visible above the current price. According to Bird, this imbalance may not go a long time without a solution.
Compensated hourly liquidity, reduced short-term volatility
The liquidity heatmap of XRP on the hourly candlestick chart shows that much of the nearby liquidity is below the current price. has already been swept away. The visible groups around the $1.30 to $1.50 range have all been eliminated, meaning that short-term stop chases and liquidation pools have been largely eliminated.
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According to Bird, this trend shows that XRP hourly liquidity has all but disappeared. This means that XRP has less incentive to remain at current levels on shorter time frames. When short-term liquidity dries up like this, it is likely that price will gravitate towards areas where larger pools are unaffected.
Since nearby liquidity has already been drawn off, the next logical target is now where the largest concentrations of pending orders are located. As the analyst noted, these pending orders are stacked up to over $4.
XRP hourly liquidity. Source: @Cryptoinsightuk on X
Daily liquidity above $4
Liquidity on the daily heat map appears layered and dense above the current price, spanning multiple resistance bands and extending above the $4 price level. The upper regions show strong trading activity and visible liquidity clusters between $2.50 and $4.00, reflecting a high concentration of stop orders and resting interest.
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In liquidity-based trading theory, price action is often drawn to areas where there are large position orders, particularly when these areas have not yet been exploited. Bird described this longer-term liquidity as accumulating beyond $4, with the idea that longer-term liquidity is there like a magnet.
XRP Daily Liquidity. Source: @Cryptoinsightuk on X
Bird also referenced a five-month break in Bitcoin dominance. At the time of writing, Bitcoin dominance is 57.9%, up from 58.2% last week. It means Bitcoin gradually lost its dominance. A decline in dominance is always due to the rotation of capital into altcoins. If this trend continues, XRP could easily become one of the top beneficiaries, especially given its visible longer-term liquidity targets.
The analyst also noted that sentiment has not yet reached extremely low levels. XRP, in particular, has maintained a relatively positive positioning among investors compared to other cryptocurrencies like Bitcoin and Ethereum. This combination of declining dominance and neutral to cautious sentiment can create conditions for XRP Expected Rally Above $4.
Featured image created with Dall.E, chart from Tradingview.com
