XRP News Today: XRP Drops 4% as Analysts Warn of Potential Liquidation

XRP, the cryptocurrency, has recently shown signs of weakness despite its recent climb above a descending trendline that had previously capped rallies since February. The cryptocurrency is currently struggling to maintain support around $2.10, having dipped as low as $2.03. Analyst CasiTrades has warned that while XRP briefly reclaimed its breakout level, the move could be a false breakout. She added that if open interest begins to rise without a meaningful price move, particularly if it crosses 0.02% or higher, it could signal a high probability of a liquidity sweep to the downside.

CasiTrades further explained that if XRP fails to hold $2.25, it could put $2.01, $1.90, and even $1.55 in play. A capitulation move toward these lower levels, while painful in the short term, could generate the exact momentum XRP needs to finally break free of its multi-year range. She suggested that such a shakeout could pave the way for a powerful Wave 3 breakout in the coming weeks.

Technical indicators support the bearish short-term outlook. RSI and Stochastic indicators on the daily and 4-hour charts are showing oversold conditions, hinting at continued selling pressure before a possible rebound. The market is currently watching the $1.95–$1.88 zone closely for signs of stabilization.

Adding to the uncertainty, XRP’s price action remains closely tied to Bitcoin and Ethereum. As both major cryptocurrencies trade within tight ranges and show signs of a potential pullback, altcoins like XRP are likely to mirror this behavior.

While short-term risks remain high, some analysts remain positive about XRP’s medium-term prospects. If the market can shake off current bearish sentiment, XRP could recover towards $2.25–$2.35 initially, with more ambitious targets of $3 by the end of July if bullish momentum builds.