Analyst Suggests XRP Could Access Greater Liquidity Areas: Implications Explained

Market Behavior Post-ATH: After reaching its all-time high in 2021, XRP has undergone a corrective phase characterized by a descending triangle pattern, leading to a significant liquidation event in October that reset market momentum.

Liquidity Sweep Potential: Analysts suggest XRP may dip below the $1.80 mark to fill untested liquidity pockets from previous price movements, which could create conditions for a stronger upward breakout once this liquidity is captured.

Falling Wedge Formation: The emergence of a falling wedge pattern indicates a potential bullish outcome, as it reflects seller exhaustion and increased absorption by larger market participants, rather than aggressive selling.

Improving Momentum Indicators: Despite the potential for short-term dips, indicators like the MACD and Stochastic RSI show signs of improving momentum, suggesting that a significant upward move could follow the completion of liquidity sweeps.