XRP Just Hit An Infamous Liquidity Pocket, Here’s What Happened Last Time It Hit

XRP has as soon as once more traded straight right into a worth zone that a couple of merchants have come to recognize as a liquidity pocket. This space has acted as a magnet for worth since December 2024, inflicting repeated exams and reactions that stand out clearly on the worth chart. In a current technical breakdown shared on X, crypto analyst ChartNerd highlighted how XRP has repeatedly made contact with this liquidity pocket over the previous yr and the cryptocurrency may be approaching a reduction bounce.

Liquidity Pocket: Support Or Springboard?

Technical analysis of XRP’s worth motion exhibits that the cryptocurrency is now buying and selling inside a liquidity zone that has acted as a help vary since December 2024. This liquidity zone, which spans the vary from $1.90 to $1.75, has acted as a worth magnet for a lot of months. Even after reaching its all-time high of $3.65 in July 2025, XRP entered right into a multi-month correction that finally discovered help at this liquidity zone.

According to the evaluation, almost each prior go to to this zone was adopted by some type of reduction, particularly when momentum indicators aligned. The final time XRP returned to this stage, it slowed down its decline and finally bounced again above $2.4 in early January.

However, the latest push downwards played out as a 20% decline after a rejection on the $2.40 zone in early January, which has primarily pushed the XRP worth motion again to buying and selling inside this liquidity vary and has began to indicate tentative stabilization. 

To carry additional affirmation to the setup, the analyst included the day by day Stochastic RSI beneath the worth chart. This momentum indicator, which measures relative energy and circumstances of overbought or oversold strain, is at the moment sitting in deeply oversold territory based on the chart. These oversold circumstances within the Stoch RSI aligned with rebounds off this similar liquidity pocket.

XRP Price Chart. Source: @ChartNerdTA On X

What Happens Next?

If historical past repeats itself, the repeated exams of this liquidity pocket and accompanying oversold alerts may be clearing the road for a bounce. If XRP was beneath this pocket and rejecting at this stage, that will be bearish. Holding it as help for a protracted length factors to a robust help energy on this space.

That mentioned, there’s one other risk that the reverse might occur. Should XRP break decisively beneath this zone with robust promoting strain, the technical setup would shift from supportive to bearish and depart the worth motion trending downwards.

Trading exercise hints that current consumers could also be in a tricky spot, as a result of the combo of holders now resembles the early 2022 structure when worth strain was high. That means many individuals could also be beneath their breakeven price foundation, and this could construct promoting strain over time if costs fail to maneuver greater.