XRP Analyst Sees Liquidity Hunt to $1 Before ‘Real Move’

XRP could be headed for one final drop toward the key $1 level before a larger recovery begins. 

Analyst Arthur believes several technical and regulatory factors are lining up for a possible turning point. His comments come as XRP remains under pressure in the ongoing crypto market decline.

Notably, the token is currently trading at $1.13, down 2.21% over the last 24 hours, according to CoinMarketCap.

Key Points

Analyst Targets $1 Liquidity Zone

In a chart shared on X, Arthur highlighted XRP’s weekly structure. He pointed to the 0.786 Fibonacci retracement level near $1.17, noting that it has already been tested twice.

Arthur also noted that XRP has broken a long-term descending trendline that stretches back to its all-time high. This could be a sign that the downtrend is weakening. However, he does not believe the market is finished with the $1 area.

“$1.00 still sitting there. Full of liquidity,” Arthur wrote.

According to him, traders and market makers could push XRP down to $1, or even slightly below it, to trigger stop-loss orders and shake out weaker holders. He sees this as a final liquidity sweep before a stronger upward move begins.

The chart also identifies a support zone between $0.95 and $1.00. Arthur believes this area will be important if selling pressure continues.

Clarity Act as Potential Catalyst

Arthur also pointed to the Clarity Act in the U.S. Senate as a possible catalyst for XRP. He noted that July 4 is a target date for progress on the legislation. That places the event about a month away.

In his view, regulatory clarity combined with improving market structure could create favorable conditions for XRP once the current correction ends.

Community Agrees With Shakeout Scenario

Arthur’s analysis received support from Korean market commentator @free_salaryKR. The commentator described the $1 level as a “massive psychological magnet.”

He argued that a move into that area would be a classic liquidity hunt, forcing impatient traders out of their positions before a larger rally.

According to his analysis, the combination of a broken all-time-high trendline, Fibonacci support, and the Clarity Act timeline creates what he called a “textbook setup” for a potential reversal.

XRP Falls Alongside Broader Crypto Market

Despite the bullish long-term outlook, XRP remains caught in a market downturn. CoinMarketCap data shows that total cryptocurrency market capitalization fell 2.07% over the past 24 hours.

Investor sentiment has also weakened sharply. The Fear & Greed Index currently sits at 17, signaling “Extreme Fear.”

Meanwhile, the CMC Altcoin Season Index dropped 6.52%. This suggests capital continues to move away from altcoins like XRP and into relatively safer assets during the current macro-driven sell-off.