XRP currently has no major liquidity clusters above $3.20, increasing volatility potential.
Long liquidations have spiked above $70M, indicating over-leveraging as the price pushed past key levels.
XRP price surged rapidly from $2.00 to $4.00 due to minimal resistance in higher bands.
XRP is currently experiencing a notable surge in volatility, with updated market data revealing an absence of liquidity clusters across its current trading levels. According to liquidation heatmaps and total liquidation charts, XRP has breached multiple resistance zones without encountering dense liquidity bands.
This condition typically leads to sharp price fluctuations, driven by unimpeded price movement in either direction. From late June to mid-July, the asset has gained significant ground, now trading near the $3.50–$4.00 range. Notably, order book data shows minimal resistance, suggesting market depth has thinned at upper levels.
XRP Liquidity Thins Above $3.20, Fueling Volatility
Recent liquidation heatmap visuals display a concentration of past activity between $2.20 and $3.00, highlighted in yellow and green. However, above $3.20, the chart turns dark with scattered bands, indicating weakened liquidity. This shift began in late June, as XRP climbed steadily from its $1.90 zone.
https://twitter.com/Steph_iscrypto/status/1947169260398051391
The market saw dense transaction clusters at lower levels, yet the price broke through them with minimal friction. Currently, there are no significant clusters forming above the $3.50 mark. These conditions frequently result in heightened volatility, as market participants encounter fewer limit orders to absorb buying or selling pressure.
Long Liquidations Spike as Leverage Builds Risk on XRP Charts
Data from the XRP Total Liquidations Chart confirms a rise in long liquidations, particularly as the price moved beyond $3.00. On July 19, total liquidations spiked, with long liquidations surpassing $70 million. The chart also shows increased long exposure during the rally, followed by large liquidations on sharp retracements.
The price path from late May to mid-July was marked by a steady uptrend, attracting leverage on both sides. However, with no significant short clusters forming, long positions now dominate the risk landscape. This situation leaves the asset more sensitive to sudden downside corrections.
Source: Coinglass
From late April to early July, XRP traded in a tight band near $2.00, with repeated rejections just above $2.50. The recent breakout saw volume increase and price surge beyond key historical levels. As the price rose past $3.20, the lack of historical volume and order activity became apparent on the heatmap.
The move from $3.00 to $4.00 occurred with fewer liquidity walls, accelerating price movement. Market depth at current levels remains thin, with no visible resistance clusters on the updated map. This positioning sets the stage for continued high volatility in the short term.
