- XRP has reacted to the first supply zone but is pushing toward a second key level
- Liquidity below remains untouched—watch for a potential fakeout before a real move
- Retail traders could get trapped—understanding smart money movements is crucial
In our last analysis, we highlighted how XRP had liquidity sitting above and could make a move to grab it before reacting to key supply zones.
The price has now reached the first supply area, showing a reaction—but instead of reversing, it seems to be pushing toward the second supply level.
So, what’s next? Will we see a strong reaction here, or is XRP just setting up for another liquidity grab before a bigger move?
XRP Analysis: Watching the Next Supply Zone
XRP has already reacted at the first supply zone, but instead of confirming a bearish shift, it’s heading toward the next major level.
This suggests that the market might still be hunting liquidity before making a decisive move.
Key observation: There’s a significant amount of liquidity sitting below current levels.
If XRP bounces on this second supply area, we could see a sharp move downward to grab that liquidity before any potential recovery.
Retail Traps & Smart Money Moves
Just because the price is hitting a supply zone doesn’t guarantee an immediate reversal. Market makers love to trap retail traders before making the real move.
- Does the price show signs of absorption at the second supply zone? If so, we might get a reversal
- If no reaction occurs, does the price push even higher before dropping? This would suggest further liquidity hunting
- If the price starts dropping, does it sweep the liquidity below before bouncing? That could be the confirmation we need
Traders on Weex can take advantage of advanced trading tools to manage their XRP trades more effectively. Staying ahead of liquidity grabs is key in this type of market.
Final Thoughts: Be Ready for Anything
At the end of the day, no one can predict the market with 100% certainty. XRP could respect the second supply zone and reverse, or it could continue hunting liquidity before making a real move. The best strategy? Stay patient, watch for confirmations, and avoid jumping in too soon.
What’s your take? Will XRP reverse at the second supply zone, or is this just another trap?
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
