Analyst Says The Next Move for XRP Could Be “Violent” – Here’s Why

Crypto analyst Steph Is Crypto has warned that XRP’s price could experience a violent move in the coming days, based on the latest liquidation heatmap for the XRP/USDT perpetual market. According to Steph, liquidity pools have formed both above and below the current price, suggesting that the next price action for XRP could be sharp and unpredictable.

The XRP market has already seen substantial volatility recently, but this new insight has intensified concerns. The heatmap highlights significant areas where leveraged positions are vulnerable to liquidation. When these positions get liquidated, the market can see sharp price swings that may trigger even larger movements.

New Liquidity Pools Could Cause Sharp Price Movements

According to the liquidation heatmap, large liquidity zones are now positioned at critical price levels, especially around $2.0, $2.5, and $3.5. These zones represent points where substantial liquidation pressure could build up. If the price of XRP moves close to these levels, a sudden wave of liquidations could follow, sparking violent fluctuations in the market.

The presence of liquidity pools at these price points indicates that XRP may soon face a major price shift. Liquidations can have a domino effect in leveraged markets, as positions are automatically closed, often resulting in further price declines or spikes. With the market’s leverage levels rising, the next movement in XRP’s price could trigger a snowball effect, leading to a significant jump in volatility.

Why Analysts Are Concerned About the Upcoming Price Action

Given the current market conditions, the risk of a major move in XRP is high. Analysts are particularly focused on how the price interacts with these liquidity pools. Should the price break through any of these crucial levels, it could spark a series of liquidations, pushing the market into unpredictable territory.

This type of price action is typical in markets with heavy leverage, where traders are at risk of being forced out of their positions. The potential for a “violent” move, as described by the analyst, arises from the sheer size of the liquidity pools in play and the large number of positions that could be liquidated if these price points are breached.

As XRP continues to move within this volatile range, traders will be keeping a close watch on the next major shift in price. The market could either surge sharply upwards or take a sudden downturn, creating opportunities for those positioned correctly but also posing risks for those caught in the wrong direction.