XRP Stands Strong: Why Recent 50% Flash Crash Doesn't Signal Bearish Trend
Despite a recent sharp 50% flash crash that sent shivers down the spines of many traders, XRP’s price may not be as bearish as some perceive. According to crypto analyst Cryptoinsightuk, the digital asset still holds a bullish outlook, with several technical indicators and market dynamics suggesting a potential upward trajectory rather than a prolonged downturn.
Understanding Liquidity and Market Maker Influence
Cryptoinsightuk asserts that XRP currently possesses "no downside liquidity," indicating a lack of strong selling pressure below its current price level. This absence of substantial sell-side liquidity means that the market is not heavily weighted with sellers, making further significant drops less likely. The analyst further highlights that market makers and exchanges might be incentivized to drive the price higher, pushing it into deeper liquidity areas where they can execute profitable trades. This strategic move by major players could provide the necessary impetus for XRP to recover and even ascend to higher price points.
The Bigger Picture: Weekly Charts and RSI Signals
Contrary to short-term panic, the weekly chart for XRP reveals a remarkably resilient and "normal trend" even after the flash crash. The analyst emphasizes the importance of higher timeframes for reliable price trend analysis, dismissing the bearish interpretations often derived from the monthly chart alone as insufficient. Looking back three months, the chart continues to support a strong, long-term bullish trend. Furthermore, the daily Relative Strength Index (RSI) recently entered an oversold territory—a signal that, historically, has preceded significant upward price movements for XRP. This pattern suggests that a bounce back could be imminent, offering a strong counter-narrative to the prevailing fear.
