Crypto

XRP: Emerging Exit Liquidity Pattern Indicates Potential Drop to $1

XRP Market Analysis: Potential for Major Price Shifts in 2025

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XRP’s Current Support and Future Speculations

While XRP continues to maintain its support levels amidst a wider crypto market correction, there is speculation that this bullish momentum might be short-lived. A prominent cryptocurrency analyst has indicated that XRP’s price might be on the verge of a significant downturn, potentially plummeting to levels anticipated for 2024. This prediction aligns with the emergence of an exit liquidity pattern, historically signaling an impending peak for this altcoin.

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Exit Liquidity Pattern: A Historical Indicator

Historically, XRP’s price surges have often concluded with an exit liquidity phase. This pattern was last observed in 2021, which heralded the end of a notable XRP rally and resulted in a severe market correction. According to a detailed analysis by crypto analyst Oky_Bren on TradingView, this pattern appears to be re-emerging.

Analyzing the Exit Liquidity Pattern

Oky_Bren’s analysis highlights several key indicators of the exit liquidity phase. The initial signal is the formation of three similar lows, as depicted in the 2021 chart using yellow markers. This phase is followed by a sharp price increase, which provides liquidity for institutional exits, subsequently leading to a decline that traps late investors.

This cycle appears to be repeating, with the first low noted in December 2024, followed by similar lows in February and April 2025. A recent spike in XRP’s price suggests that the pattern’s final stages are unfolding, with the potential rally peak estimated at around $2.9 before profit-taking could initiate a downward trend.

Potential Implications of a Price Crash

If the current pattern mirrors past trends, XRP could face a substantial price drop, historically ranging between 70-80%. This scenario may result in the price plummeting to approximately $1 or even lower. The market dynamics, influenced by factors such as political endorsements of cryptocurrency—like Donald Trump’s favorable stance—have contributed to this recurring three-low structure.

Market Dynamics and Future Predictions

The analyst notes that the crypto market’s recent surge, fueled by positive political sentiment, has created an imbalance, fostering conditions for another three-low pattern. “This pattern has been a consistent feature across previous market cycles, and 2025 appears to be no exception,” the analyst notes.

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Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

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