XRP’s market liquidity profile is tilting toward higher price levels, with one analyst suggesting the path of least resistance could extend toward $4. The view comes from crypto analyst Bird, who commented on hourly and daily liquidity heatmaps shared by market watcher Cryptoinsightuk. XRP was trading around $1.45 at the time of writing.
Short-Term Liquidity Thins Near Current Price
According to the hourly liquidity heatmap, much of the nearby liquidity below XRP’s spot price has already been swept, particularly in the $1.30–$1.50 area. Bird noted that this reduces the immediate incentive for price to consolidate around current levels on lower timeframes, as typical stop-hunt and liquidation pools have been largely cleared.
In liquidity-based trading frameworks, once short-term resting orders are taken, price often seeks out areas with larger, untouched pools of liquidity. Bird argued that, on the hourly view, XRP’s near-term liquidity has “basically gone,” increasing the likelihood that price action gravitates toward higher levels where more substantial orders remain.
Daily Heatmap Points to Clusters Toward $4
The daily liquidity heatmap appears denser above XRP’s current price, showing notable clusters between roughly $2.50 and $4.00. Bird described this higher-timeframe liquidity as “stacked” above the market, suggesting it could act as a magnet for price if demand persists. While not a prediction, the analyst’s read is that the path of least resistance may extend into the $4 area if those higher pools are targeted.
Bitcoin Dominance Eases, Signaling Altcoin Rotation
Bird also highlighted a five-month downtrend in Bitcoin dominance, which stood at 57.9%, down from 58.2% last week. A decline in Bitcoin’s market share often reflects capital rotating into altcoins. Should that trend continue, XRP could be a beneficiary, given the visible higher-timeframe liquidity targets noted on the heatmaps.
Market sentiment, the analyst added, has not reached extremes. XRP’s investor positioning remains relatively constructive compared to some large-cap peers, including Bitcoin and Ethereum, which could support follow-through if broader altcoin flows persist.
Key Levels to Watch
- Hourly liquidity near $1.30–$1.50 has been largely cleared.
- Daily liquidity clusters are visible from approximately $2.50 to $4.00.
- Analyst view: higher-timeframe liquidity is concentrated above current price, with potential draw toward the $4 area.
As always, liquidity heatmaps reflect order concentration rather than guaranteed outcomes. Market conditions, volume, and broader risk sentiment will influence whether XRP moves to engage those higher liquidity zones.