XRP's Liquidity Sweep: A Strategic Entry Point Before the Next Major Upswing

The XRP market is at a pivotal juncture, with technical and liquidity dynamics suggesting a deliberate bear trap forming near critical support levels. Analysts from ChartNerd, CryptoInsightUK, and Will Taylor have highlighted a strategic accumulation zone around $1.80–$2.01, where a potential liquidity sweep could rebalance order books and set the stage for a stronger bullish move. This analysis synthesizes their insights to argue that a dip below $1.80 may not signal a bear market but rather a calculated setup for a rebound.

Technical Structure: The Bear Trap at $1.90–$1.93

ChartNerd has identified a high-probability bear trap forming in the $1.90–$1.93 range, where the 20-month EMA (~$1.93) acts as a critical trend filter. A monthly close above this level could signal a market bottom, while a sharp decline below $1.90 risks triggering further losses. This zone represents a "make-or-break" scenario for XRP, as a breakdown could lead to a sweep into lower liquidity pockets, potentially revisiting the $1.55 level. However, ChartNerd warns that such a move might be a liquidity grab designed to flush out weak hands before a stronger upside reversal.

Liquidity Dynamics: Denser Pockets Above Current Levels

Will Taylor of CryptoInsightUK emphasizes that XRP's liquidity profile remains skewed toward higher price levels. He notes that the densest resting liquidity is concentrated above the current price, extending up to $4.20–$4.30. This distribution statistically favors upward movement, as exchanges and market makers benefit from price activity in these zones. Taylor also highlights a near-term trigger level at $2.07, where short-covering could drive a rapid rebound toward $2.58–$2.60. Even if XRP dips below $2.05–$2.03, the broader range remains intact, suggesting the dip is a temporary correction rather than a structural breakdown.

Strategic Accumulation: Risk-to-Reward at $1.80–$2.01

The $1.80 level has emerged as a focal point for strategic entry. ChartNerd warns that a sweep below $1.90 could mislead traders into expecting deeper downside, only for the price to reverse sharply afterward. Will Taylor reinforces this, noting that the $1.60–$2.01 range offers a favorable risk-to-reward setup, with clear invalidation levels and defined upside targets. Specifically, he identifies $1.83 as a liquidity pocket tied to his stop-loss placement at $1.834. A rebound above $2.07 could act as a bullish trigger, leveraging increased short exposure to drive a short squeeze.

The Case for a Liquidity Sweep and Rebound

The interplay of technical and liquidity dynamics suggests a deliberate bear trap. If XRP dips below $1.80, it may test the $1.55 level before rebounding, as ChartNerd anticipates. This scenario aligns with historical patterns where liquidity pockets at lower levels precede sharp price reversals. Meanwhile, Will Taylor's analysis of XRP's dominance metrics and relative strength against Bitcoin and Ethereum indicates a potential shift in sentiment. The recent $20 billion liquidation event in October 2025 further underscores the market's resilience, with sharp downward moves quickly reversing.

Conclusion: Positioning for the Next Upswing

XRP's current structure and liquidity profile present a compelling case for strategic accumulation. The $1.80–$2.01 range offers a defined risk-to-reward setup, with technical indicators and liquidity dynamics favoring a rebound. While a breakdown below $1.90 introduces downside risk, the historical context and expert analyses suggest this is more likely a liquidity sweep than a bear market confirmation. Investors who recognize this setup may position themselves to capitalize on the next major upswing, leveraging the market's inherent tendency to gravitate toward denser liquidity pockets.