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XRP Traders Warn of a Final Flush to $1.20 Before a Bullish Reversal
$XRP traders are warning that one more sharp drop may occur before a real bullish move begins. Several $XRP analysts on X pointed to rising risks as $XRP continues to struggle below key resistance levels in the $1.30–$1.40 zone.
According to analyst Cryptoinsightuk, $XRP has moved into so-called liquidity zones on shorter timeframes. According to his analysis, in the short term, $XRP is most likely to sweep liquidity down to $1.20 before potentially recovering more strongly.
Cryptoinsightuk noted growing downside liquidity clusters visible on hourly charts, warning that markets often move toward such zones before reversing in the opposite direction.
He also noted that $XRP is oversold on the 4-hour chart. For an ideal bullish setup, the analyst wants to see a final flush to $1.20, followed by bullish divergence, where the price makes a lower low while the RSI forms a higher low.
Such divergence usually means that although the price is still falling, selling pressure is beginning to weaken.
Artificial Decline or Real Capitulation?
Meanwhile, another analyst known as CW argued that the recent $XRP decline may not be driven by real selling pressure, calling the drop artificial. The analyst noted that even as the $XRP price falls, open interest and net long positions continue to rise.
Typically, when the price falls and open interest declines, it means traders are leaving the market. However, when open interest rises during a price decline, it often signals that leveraged positions are still being accumulated. CW believes this may mean the sell-off is more related to market positioning and liquidity games than to broad investor capitulation.
Adding to the tension, analyst CasiTrades described the $XRP situation as a “critical moment,” emphasizing growing anticipation among $XRP traders.
From a technical perspective, traders are now closely watching several key levels. These include $1.20 as the main liquidity and support zone, $1.00 as a psychological and daily liquidity zone, and the $1.30–$1.40 area as immediate resistance.
See also: "XRP Derivatives Heat Up as 20x Long Positions Meet Strong Short Pressure on Binance"
