XRP is trading in one of the tightest pressure zones it has seen in weeks, with liquidation data showing massive clusters of liquidity sitting both above and below the current price. The setup has created a classic compression structure; one where price often moves slowly until a liquidity pocket gets triggered, followed by a sharp, impulsive breakout. With XRP holding around $2.08, traders are watching closely to see which side gets swept first.
What you'll learn 👉
Liquidation Map Shows Two Opposing Liquidity Walls
The XRP Liquidation Map highlights a clear battleground forming around the current price. On the upside, there is a heavy band of short-liquidation liquidity stretching from $2.10 to $2.20, meaning even a modest push above $2.12 could set off a cascade of forced buy orders. These kinds of squeezes often accelerate quickly, especially when liquidity is tightly packed.
On the downside, longs are heavily exposed between $2.03 and $1.98, forming a dense liquidation zone that could be tapped if XRP loses support. This area represents millions in liquidations, and a break under $2.04 would likely trigger a downwards sweep toward the high-$1.90 range.
With the current price stuck almost exactly between these two zones, XRP is in a true decision structure, the kind that rarely lasts long before volatility kicks in.
Low Liquidation Activity Shows Leverage Has Been Flushed Out
The second chart we researched today (the Total Liquidations Bars) gives important context to the current setup. Liquidations across XRP derivatives have been extremely low throughout November and early December. The massive liquidation spikes from earlier in the year are long gone, suggesting the market is operating with a much lower leverage footprint.
This is usually a precursor to bigger moves. After leverage gets washed out, trends often form more cleanly because there is less noise from overexposed traders. It also means fewer forced moves, with price action becoming more dependent on actual spot demand rather than liquidation-driven volatility.
The market is basically in a reset phase: low leverage, low noise, and a clear liquidity pocket forming on both sides; the perfect conditions for a meaningful breakout once a level gives way.
What This Means for XRP’s Price Outlook
With XRP trapped between large liquidation magnets, the next major move will likely depend on which cluster gets taken first.
If XRP pushes above $2.12, a short squeeze could follow, opening a clear path toward:
- $2.15
- $2.20
- And possibly $2.28–$2.30 if momentum expands
This aligns with many analysts’ expectations that XRP remains positioned for a breakout retest of the $2.41 resistance zone, which has capped upside attempts for weeks.
However, a rejection from current levels and a drop under $2.04 would put the long-liquidation cluster in play. Such a move could drag XRP toward:
- $2.00
- $1.97–$1.98
- And possibly deeper liquidity near $1.95
Both scenarios are currently valid, and neither side has taken control which is exactly why traders are watching this zone so closely.
Read also: Market Expert Reveals 3 Reasons XRP Price Failed to Pump in 2025
Short-Term XRP Price Prediction:
If volatility expands from this compression zone, XRP’s short-term range is expected to fall between $1.98 and $2.22, with a breakout above that range opening the door for a move toward $2.40–$2.50, and a breakdown exposing $1.90–$1.95.
Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.
