- XRP targets $1.70 liquidity zone as CME gap draws traders attention
- Market stabilizes after decline as analysts point to potential upside move
- ChartNerd signals positioning phase as XRP builds foundation after major retracement
Crypto analyst ChartNerd signaled a key shift in XRP’s short-term outlook as we approach the final stretch of March. In a recent post, he pointed to a CME gap above current price levels, suggesting that liquidity dynamics could drive XRP higher before any deeper pullback takes shape. This development has placed renewed attention on XRP’s near-term direction as price stabilizes after weeks of decline.
CME Gap Becomes Central to Short-Term Price Direction
Price action shows that XRP has been consolidating between roughly $1.25 and $1.50 following a sharp drop earlier in February. This range has developed after a broader downtrend that pushed the asset lower from highs above $2.30. As a result, the market has entered a phase where volatility has eased while participants assess the next move.
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According to the analyst, the CME gap between $1.70 and $1.75 is acting as a potential magnet for price. He noted that XRP could move upward to sweep buy-side liquidity resting in that region.
This expectation reflects how markets often target areas with clustered orders before establishing a clearer direction. Additionally, he referenced a planned move toward the $1.80 to $2.00 range during March, reinforcing the importance of the overhead zone.
Liquidity Dynamics and Market Positioning Come Into Focus
Besides, the concept of liquidity sweeps remains central to this outlook. Buy-side liquidity typically forms above resistance levels, where stop orders and breakout positions accumulate. Consequently, price can move upward to trigger those orders before reversing direction. This dynamic suggests that any rally toward the CME gap may serve a structural purpose rather than signal a sustained trend shift.
However, the broader market structure still reflects a corrective phase, as XRP continues to form lower highs and lower lows, indicating that a full bullish reversal has not yet developed. Therefore, while the upside move toward $1.70 remains possible, it may face resistance if momentum fails to strengthen beyond that level.
According to ChartNerd, XRP has already retraced about 70% from its previous peak levels. He emphasized that much of the downside pressure has already played out, which signals a transition away from heavy selling conditions. Moreover, he stated that this phase calls for repositioning rather than panic, as the market gradually builds a foundation over time.
XRP’s current setup highlights a potential move toward the $1.70 zone driven by liquidity dynamics. However, the broader trend continues to suggest caution as the market stabilizes after its recent decline.
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