Analyst: XRP On Track to Hunt Every Stop Up to $4.50 Based On This Liquidity Trend

A recent liquidity heatmap from Coinglass shows a notable build-up of short-side liquidity above current XRP price levels. The chart, shared by analyst Steph Is Crypto (@Steph_iscrypto), outlines a sequence of concentrated order zones extending from just above $3 to roughly $4.5.

The positioning of these clusters suggests a market environment where an upward move could trigger a chain reaction of liquidations and stop orders.

XRP Chart Breakdown

The heatmap plots both historical price action and liquidity density from mid-May to early August. Darker and more saturated areas indicate heavier concentrations of liquidity, and the most prominent regions appear stacked above current trading levels, with particularly dense layers forming between the $3 mark and $4.5.

In mid-July, XRP experienced a sharp breakout, climbing to an all-time high of $3.65. However, this rally was short-lived, as the asset experienced an immediate correction, falling to $2.99 before a quick recovery.

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This sequence of rapid price movements left behind a distinct liquidity footprint, with the breakout phase coinciding with a visible surge in liquidity pockets. These zones likely mark where short positions were entered and stops were placed, and they now sit above the current price as potential targets for a liquidity sweep.

The absence of significant liquidity above $4.5 is also notable. Should price break through the upper cluster zones, the chart implies reduced resistance, allowing for a cleaner upward move until new liquidity forms.

Potential Implications for XRP

Large, concentrated liquidity bands above current price levels often provide clear directional targets in trending markets. When bullish momentum is sustained, these zones can force shorts to cover positions, adding to buying pressure and driving the price through each successive cluster. This process can lead to rapid advances, particularly in assets where order books thin out at higher levels.

Liquidity heatmaps offer valuable insight into where these opportunities may emerge. As price approaches high-liquidity areas, the potential for significant movement increases, creating openings for traders to capture strong upward extensions. Identifying these levels in advance helps participants prepare strategies that leverage such scenarios.

Analysts have advised XRP holders to prepare for a surge to $4.5. This could set off a chain of forced position closures, potentially pushing XRP toward higher levels.

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