XRP, Captures Bidirectional Liquidity...Up or Down?

▲ XRP/AI Generated Image

Cryptocurrency analyst Ted Pillows pointed out key liquidity zones for XRP in both directions, raising the possibility of increased volatility in the future.

According to a Bitcoinist report, Pillows analyzed that XRP is currently forming a structure that attracts liquidity from both the top and bottom within a sideways trend. He explained that this is a typical pattern where buy and sell orders are simultaneously absorbed in key areas above and below before the price moves in one direction.

He emphasized that XRP is currently in a 'liquidity acquisition zone' where market participants liquidate their positions before showing a clear direction. During this process, the price may test both the upside and downside in the short term, which is often interpreted as a pattern that occurs before large capital enters.

According to the analysis, if the upper liquidity zone is exhausted first, a short-term rise may occur, but the possibility of continued volatility testing the lower liquidity zone again cannot be ruled out. Conversely, if the lower liquidity is cleared first, a scenario where additional downward pressure is followed by a rebound could unfold.

Pillows pointed out that this structure demonstrates the need to approach it based on market liquidity flows rather than simple directional analysis. In other words, the next move for XRP is likely to be determined by which side's liquidity is absorbed first, rather than whether a specific price level is broken.

Ultimately, XRP is currently in a phase preparing for increased volatility before its direction is confirmed, with price movements likely to target both upper and lower liquidity zones.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*