XRP could be setting up for a major upside liquidation even as near-term price action remains vulnerable, according to Cryptoinsightuk analyst Will Taylor, who argued in a March 24 video that use of positioning, funding data and broader market structure still point to a move higher later in the cycle.
Taylor’s core claim It’s not that XRP has bottomed out or that the downside risk has disappeared. It’s that the balance between leverage, sentiment and liquidity remains skewed in a way that could ultimately push the price higher, especially if crypto gets a supportive macro or policy catalyst.
Bullish XRP liquidity is building
Much of that thesis relies on liquidation maps. Looking at XRP, Taylor said there is “pretty significant liquidity” below current levels in the near term, especially around $1.25 to $1.21. But he emphasized that the most important picture emerges from a higher timeframe perspective, where the density of liquidity above the market is much greater than below it.
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“Significant upside liquidity,” he said. “Look again at the difference between the density of all this liquidity on the right and on the left. Yes, there is liquidity heading towards the dollar, towards 94 cents, but all the way up to $3.59 there is substantial liquidity for XRP.”
He then posted figures on that imbalance. On the other hand, Taylor pointed to about $20 million in short-term liquidity around $1.24. On the plus side, he said the chart shows about $300 million, almost $3.38, and another about $300 million, almost $3.60. That contrast, he argued, is one reason he remains bullish despite the market’s weak tone.
“There’s so much liquidity on the right side,” Taylor said. “And I think that’s something that people should pay attention to here.”
Taylor linked this intention to the derivatives sentiment. He said XRP has already experienced eight consecutive weeks of negative aggregate funding, with the current week potentially becoming a ninth if it ends negative. According to him, the only comparable stretch came at the bottom of the 2022 bear market.
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“We’ve had eight weeks of negative funding,” he said. “The only other time we’ve had that was here, which was the bottom of the bear market in 2022. So I think people are sentimentally and structurally underestimating where we might be in crypto right now.”
Yet Taylor did not present the case as a linear escape. He repeatedly warned that XRP could continue to compress within what he described as a falling wedge or bull flag-like structure, and that a deeper flush remains possible before a bigger move occurs.
“It doesn’t mean we have to come here and break straight up,” he said. “This is also possible. You could just chill and move down like that. But this is all volatility compression. And if that volatility compression materializes, if we do that, the moves will be even bigger, if we drop to, say, $1 by June, the move up will be even more explosive than if we move now.”
He raised several possible catalysts, including progress on crypto legislation such as the Clarity Act, broader monetary easing by the Federal Reserve, or some other US policy measure that could improve liquidity conditions. “I think there’s going to be some kind of story that will come out that will be quite positive for the markets,” he said. “I think the Clarity Act could be one of the things that we really start to lean on.”
At the time of writing, XRP was trading at $1.42.
Featured image created with DALL.E, chart from TradingView.com