XRP Market on High Alert for Potential Breakout

The XRP market is exhibiting signs of renewed liquidity compression, which could signal a potential breakout in the near future.

Data from Binance exchange shows that large deposits surged ahead of a major XRP rally in the past, indicating that exchange inflows can also mark positioning phases before sharp price expansions.

CryptoQuant notes that while exchange inflows are often seen as sell-side pressure, they can also be a sign of investors preparing for a surge in volatility. In earlier rallies, USD liquidity expanded significantly, supporting upward momentum despite high volatility.

However, current conditions differ, with declining USD liquidity indicating thinner market depth compared to prior expansion phases. Reduced depth typically increases sensitivity to flows and amplifies price reactions.