XRP News Today: XRP Faces Forced Liquidations Above $3 as Short-Liquidity Clusters Build to $4.5

Generated by AI AgentCoin World
Monday, Aug 11, 2025 2:58 am ET1min read
XRP
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Aime RobotAime Summary

- Analyst Steph Is Crypto identifies concentrated short-liquidity clusters above $3-$4.5 for XRP, risking forced liquidations if price rises through key resistance levels.

- Historical data shows XRP's July 2025 rally to $3.65 left liquidity pockets at $3-$4.5, now acting as critical resistance zones for further upward movement.

- Absence of liquidity above $4.5 suggests a clearer path for XRP's potential surge, with bullish momentum forcing short-covering and amplifying buying pressure.

- Post-election 500% XRP surge outperformed crypto peers, shifting focus to upward momentum as short-term downside risks below $3 appear exhausted.

Analyst Steph Is Crypto has highlighted a growing concentration of short-side liquidity above current

XRP
price levels, based on a liquidity heatmap from Coinglass [1]. This data suggests that XRP could face a potential chain reaction of stop-loss orders and forced liquidations if it moves upward through key resistance levels. The liquidity clusters are concentrated between $3 and $4.5, with the most densely packed zones forming above the current trading price. These clusters, according to the analyst, are indicative of where short positions and stop orders were previously established and now represent potential price targets [1].

The liquidity heatmap spans from mid-May to early August 2025 and visually depicts where liquidity has accumulated. The most significant liquidity concentrations are found above the current XRP price, forming distinct layers between $3 and $4.5. Analysts have noted that if the price breaks higher and sweeps through these liquidity pockets, it could trigger forced closures of short positions, amplifying upward pressure [1].

Historically, XRP experienced a sharp rally in mid-July, reaching an all-time high of $3.65 before retreating to $2.99. This rapid movement left behind a clear liquidity footprint, with liquidity pockets forming during the breakout phase. These pockets are believed to represent areas where short positions were initiated and stop-loss orders were placed, now serving as key resistance levels for further price movement [1].

A critical feature of the heatmap is the absence of significant liquidity above $4.5. Should the price break through the upper cluster, it may continue upward with reduced resistance, potentially reaching new levels until fresh liquidity forms. In trending markets, large liquidity bands above current price levels can act as directional targets, and sustained bullish momentum can force short sellers to cover their positions, adding to buying pressure and driving the price higher [1].

According to the analyst's forecast, XRP could experience a surge toward $4.5, which may trigger a chain reaction of forced position closures and push the asset toward higher levels [1]. This projection is based on the observed liquidity structure, where the absence of liquidity above $4.5 suggests a cleaner path for continued upward movement.

The implications for XRP holders are clear. Those with stop-loss orders in the identified liquidity zones may be at risk of forced liquidation should the price move upward. Traders are advised to monitor these levels closely and adjust their strategies accordingly [1].

Separately, a post-election surge saw XRP rise by 500%, significantly outperforming other cryptocurrencies. While this movement may have exhausted short-term downward risk below $3, the focus now shifts to potential upward momentum [2].

Sources:

[1] TimesTabloid. "Analyst: XRP On Track to Hunt Every Stop Up to $4.50 Based On This Liquidity Trend." https://timestabloid.com/analyst-xrp-on-track-to-hunt-every-stop-up-to-4-50-based-on-this-liquidity-trend/

[2] TradingView. "XRP Trade Ideas — BITSTAMP:XRPUSD." https://www.tradingview.com/symbols/XRPUSD/ideas/?sort=recent