XRP Liquidity Test: $2.7B Wall at $0.98 Sparks Downside Fears
XRP's price has been volatile in recent weeks, and analysts are sounding the alarm about a potential liquidity test. According to CoinGlass data, there is a massive liquidation zone around $0.98 on the XRP/USDT three-month liquidation heatmap, with a staggering $2.7 billion in leverage.
This liquidity cluster has been identified by analyst ChartNerd as a major concern, and he notes that buying pressure remains strong above $1.80 and $2.00. However, this large liquidity pocket below $1 increases the risk of another significant price decline.
ChartNerd pointed out that XRP had already reached the $1 area before its previous surge toward $1.70, reducing the significance of another visit as a fresh downside signal. Nevertheless, he emphasized that the large liquidity cluster around $1 remains an important level to watch.