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XRP’s liquidation heatmap reveals a critical liquidity cluster near $2.20, signaling potential for a significant breakout in the near term.
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The 30-day Network Realized Profit/Loss (NPL) for XRP has declined by 11%, pointing to a reduction in selling pressure among holders.
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According to COINOTAG analysis, a decisive move above $2.29 could propel XRP toward $2.45, while $2.08 remains a key support level to watch.
XRP’s liquidity concentration near $2.20 and a drop in Network Realized Profit/Loss suggest a potential breakout, with $2.29 and $2.45 as key price targets.
XRP Liquidity Cluster Signals Imminent Price Movement
XRP’s liquidation heatmap highlights a dense concentration of liquidity around the $2.20 price point, indicating a pivotal zone where leveraged positions are likely to be liquidated. Currently trading at approximately $2.14, XRP is positioned just below this critical level, suggesting that market dynamics could soon trigger a breakout. Liquidation heatmaps serve as essential tools for traders, visually mapping areas where stop-loss orders and margin calls cluster, often driving sharp price movements as these orders execute.
The presence of this liquidity cluster acts as a magnet for price action, as markets tend to gravitate toward these zones to absorb liquidity. In XRP’s case, this suggests a strong interest from traders either closing short positions or initiating buys, which could catalyze upward momentum. This technical setup is a critical factor for investors monitoring XRP’s potential to break free from its recent consolidation phase.
Network Realized Profit/Loss Decline Indicates Reduced Selling Pressure
Complementing the liquidity analysis, XRP’s 30-day Network Realized Profit/Loss (NPL) has decreased by 11%, currently standing at 70.27 million. The NPL metric quantifies the aggregate profit or loss realized by investors when they move their tokens on-chain. A declining NPL often signals that holders are less inclined to sell at a loss, which historically correlates with diminished selling pressure and increased holding behavior.
This trend suggests that the majority of XRP investors are adopting a wait-and-see approach, anticipating a price rebound rather than capitulating. Such behavioral patterns can create a more stable price floor, providing a foundation for potential upward price movements.
Price Targets and Support Levels Define XRP’s Next Moves
Currently trading near $2.13, XRP faces a critical juncture as bulls aim to push the price beyond the $2.29 resistance level. A successful breakout above this threshold could open the door for a rally toward the next significant target at $2.45. This price action would mark a notable shift from the prolonged sideways trading XRP has experienced below $2.50.
Conversely, if selling pressure intensifies, XRP could retest support at $2.08. Failure to hold this level might lead to a further decline toward $1.99, underscoring the importance of monitoring volume and order flow around these key price points. Traders and investors should remain vigilant for confirmation signals before committing to positions, as volatility may increase near these critical levels.
Market Sentiment and Broader Crypto Trends Impact XRP’s Outlook
While XRP shows promising technical signals, its trajectory remains intertwined with broader market sentiment and macroeconomic factors influencing the cryptocurrency sector. The current sideways drift in the overall market has created a cautious environment, but XRP’s underlying metrics indicate a potential divergence from this trend. Investors should consider both on-chain data and external market conditions when evaluating XRP’s prospects.
Conclusion
XRP’s concentrated liquidity near $2.20, combined with a declining Network Realized Profit/Loss, suggests a reduced selling pressure environment conducive to a breakout. A move above $2.29 could catalyze a rally toward $2.45, while support at $2.08 remains critical to maintain bullish momentum. Market participants should closely monitor these levels and on-chain indicators to navigate XRP’s evolving price dynamics effectively.
