- XRP approaches critical resistance as liquidity resets and accumulation quietly strengthens
- Analyst signals downtrend exhaustion as buying pressure builds near key level
- Market structure hints at reversal pending confirmed breakout above resistance
Crypto analyst CW drew attention to XRP on X after outlining notable changes in its technical structure, pointing to shifting liquidity conditions, growing buy-side activity, and price compression near a key resistance level. According to the analyst, these combined signals indicate that XRP may be approaching a point where the prevailing downtrend could lose control.
Recent trading activity shows XRP moving through a phase of compression following an extended decline. Price now trades within a tightening range that reflects weakening selling pressure. Importantly, XRP continues to test the upper boundary of this convergence structure, a level that traders monitor closely for confirmation.
Price Compression and Accumulation Signal Structural Shift
Market turbulence earlier in the session triggered the liquidation of several leveraged long positions, removing excess risk and clearing weak positioning. Consequently, XRP price stabilized instead of extending lower, despite repeated tests of nearby support levels.
Alongside the liquidity reset, strong buy-side activity emerged near lower price zones, where whales absorbed selling pressure through a clearly defined buying wall. This absorption limited downside movement, and pointed toward accumulation rather than distribution.
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$XRP has all the conditions in place.
Long positions have been liquidated, and the whales’ buying wall has been filled.
Net buying is increasing, and the upper line of the convergence has been reached.
Now, all that remains is a breakout of the upper line. A breakout of this… https://t.co/rD7QsHpgny pic.twitter.com/UAwzugNFuB
— CW (@CW8900) January 26, 2026
Volume behavior reinforced this developing shift, as buying volume increased during upward price attempts while pullbacks occurred on lighter volume. Moreover, net buying pressure gradually strengthened even as prices remained range-bound.
Liquidity Reset Strengthens Market Stability
Liquidity dynamics have played a key role in shaping XRP’s current setup, as the forced exit of overleveraged traders reduced the likelihood of sharp price breakdowns. According to CW, this reset allowed the price to consolidate rather than decline aggressively.
Order flow data showed consistent buyer interest at key levels, with large transactions clustering near support zones instead of resistance areas. Additionally, aggressive selling pressure faded as consolidation continued.
This behavior suggested improving balance between buyers and sellers, as market participants appeared more willing to accumulate rather than exit positions. Consequently, volatility compressed as positioning became more deliberate.
Technical Breakout Defines the End of the Downtrend
Market structure remains central to XRP’s outlook, with the convergence pattern showing lower highs and fading downside momentum. According to CW, a confirmed breakout above the upper boundary would invalidate the prevailing bearish structure.
Source: X
Such a move would end the downtrend and signal the start of a new upward phase, although confirmation requires strong volume and sustained price action. Until that level breaks, XRP continues to respect clearly defined technical boundaries.
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