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XRP Liquidity Zones to Watch and Potential Bottom for the Downtrend

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Market data has revealed multiple important $XRP liquidity zones for traders to watch, as well as the potential bottom price for the ongoing downtrend.

$XRP has remained under strong selling pressure since the fourth quarter of 2025. At its current price of $1.48, the token now trades 48% below where it stood in October 2025.

As the downtrend continues, market data now shows liquidity levels to watch and where this downtrend’s bottom could form. This rests on $XRP’s price structure from 2021 to 2023, especially the breakout from a multi-year descending trendline that now appears to be forming again.

Key Points

  • $XRP is trading at $1.48, down 48% from its October 2025 level, with ongoing bearish pressure since Q4 2025.
  • On the upside, liquidity sits around $1.90 and $1.98, with $1.98 holding about 101.2 million $XRP in liquidity.
  • Meanwhile, a lower liquidity zone near $1.328 holds roughly 80.57 million $XRP and sits about 10% below the current price.
  • $XRP could see an ABC correction that may eventually retest $1.30 and possibly drop to $0.97 at the Fibonacci 1.618 level.
  • A confirmed trend reversal would require a breakout above a multi-year descending trendline and a move back above the ribbon on the five-day chart.

$XRP’s Multi-Timeframe Signals Show Ongoing Weakness

CoinsKid, a well-known market analyst, discussed this amid the ongoing market uncertainty. He started the latest analysis by looking at $XRP across different timeframes, confirming ongoing weakness.

Specifically, the 12-hour chart shows sell signals that point to short-term weakness. However, the daily chart still reveals a mild long setup, and the 3-day timeframe also leans slightly bullish. Despite this, he noted that $XRP is running into resistance on the weekly chart, which led him to step back and study the bigger picture.

CoinsKid stressed that when he zoomed out, he found large areas of liquidity sitting both above and below the current price. As a result, the analyst expects an ABC correction to play out.

Liquidity Clusters at $1.98 and $1.328

He believes $XRP could first move up toward $1.90, where liquidity sits, before turning lower again. After that, he sees a possible drop into a strong liquidity zone around $1.328. This level sits about 10% below the current $1.48 price and holds roughly 80.57 million $XRP in liquidity.

On the monthly chart, CoinsKid highlighted an even larger liquidity area around $1.98. He had identified this level in a previous disclosure, with data showing it holds about 101.2 million $XRP worth of liquidity. According to him, $XRP could rise toward $1.98 as part of the ABC zigzag correction before starting another decline.

He noted that the move could push prices into the $1.90 to $1.98 range, form the B wave, shift into wave C, and then drop sharply toward lower liquidity. This drop could bring $XRP back near the $1.30 level. While admitting he remains uncertain, the analyst confirmed that these liquidity zones will likely guide the next big price swings.

$XRP Must First Breach the Multi-Year Descending Trendline

Meanwhile, on the five-day chart, CoinsKid pointed to a red sell dot that appeared at resistance. He explained that this signal correctly warned of the recent drop, which is why he expected downside instead of a breakout.

He also spoke about the importance of a compression or consolidation phase. In 2024, $XRP traded within such a compression phase in a tight range between $0.4 and $0.6. This sideways movement later led to a 580% surge in November 2024, with the price reaching about $3.4 by January 2025.

He called this period a buy, sell, buy sequence before the breakout. For him, a similar pattern, along with a move above the ribbon and alternating red sell and green buy dots, could indicate another strong rally in the future.

Right now, $XRP trades below the key ribbon and continues to face repeated resistance along the multi-year descending trendline. The price has tested that trendline several times, printed a red sell dot, and then fallen back to around $1.48.

CoinsKid believes $XRP must first break above the resistance at the multi-year descending trendline and move back above the ribbon to escape the downtrend. Until this happens, he does not see the strong accumulation signals that usually mark a true bottom.

Where $XRP Could Find a Bottom

Even with the current weakness, CoinsKid noted that $XRP has found short-term support at the Fibonacci 1.414 level near $1.14. He does not expect the price to collapse immediately. Instead, he believes $XRP could move sideways in an ABC pattern before one final drop toward the Fibonacci 1.618 level at $0.97.

He suggested that $0.97 could act as the final bottom, similar to how the Fibonacci 1.618 level at $0.2734 marked the bottom in 2022. After this kind of move, the analyst believes $XRP could trade sideways, build a base, and form the 2024-like compression that could lead to another expansion phase.

The major signal would be a clear breakout above the multi-year descending trendline, just like the move seen between 2022 and 2023, along with a push back above the ribbon on the five-day chart.

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