Ripple’s XRP is once again in the spotlight as a leading crypto analyst suggests that the token may need to experience a significant price dip before any major rally can occur. According to Crypto Insight UK, a well-followed British market commentator, XRP is currently trading above a dense pool of uncollected liquidity. The analyst believes that until this liquidity—essentially, a cluster of stop-loss orders and leveraged long positions below the current price—is cleared out, XRP is unlikely to see a sustained upward move.
Why a Drop Might Be Needed
The analyst points out that XRP recently touched a key liquidity area but didn’t fully absorb it, leaving room for further downside. He has set his own buy orders around $2.01 and $1.95, expecting these levels to be tested if the market undergoes a final “flush” where over-leveraged traders are forced out. Only after this capitulation, he argues, could XRP be primed for a rally toward the much-anticipated $10 mark.
Market Context and Macro Factors
Despite strong performances in other asset classes—such as silver reaching decade highs and the Nasdaq hovering near all-time records—altcoins like XRP have yet to break out. The analyst attributes this to lingering excess leverage in the crypto market, which he believes needs to be washed out before a new bull cycle can begin. He also notes that recent macro-political events, including high-profile disputes between figures like Elon Musk and Donald Trump, have added volatility but haven’t fundamentally changed the technical outlook for XRP.
Technical Signals to Watch
A key indicator for the analyst is the daily relative strength index (RSI). He expects to see a bullish divergence—where price makes a lower low but RSI forms a higher low—after the anticipated drop. This pattern often signals a reversal and could set the stage for a rapid move not just to previous highs near $3.80, but potentially to the $10 target.
Current Price and Forecasts
At the time of the analysis, XRP was trading at $2.17. Most mainstream forecasts for 2025 remain more conservative, with average price targets between $2.15 and $2.43 , and some estimates suggesting a high of $2.67 . However, the analyst’s scenario is based on a technical setup rather than fundamental or macroeconomic projections.
What’s Next for XRP?
While the analyst remains bullish in the long term, he is “80% sure” that XRP will first test lower levels before any major rally. He emphasizes that clearing out the liquidity below current prices is essential for a healthy, sustainable move upward. If the predicted flush occurs and is followed by a bullish divergence, XRP could be set for a significant breakout.
“If it goes up now, I’m happy. But I’d be highly surprised if we don’t get that push down,” the analyst concludes.
For those watching XRP, the coming weeks could be pivotal. Whether the token follows the analyst’s script or defies expectations, the interplay between liquidity, leverage, and market sentiment will be key drivers to monitor.
