$XRP has struggled in recent months, with charts showing lower highs and persistent selling since October. That surface weakness has shaped market sentiment. However, crypto analyst Arthur (@XrpArthur) argues that positioning data tells a different story.

Arthur shared a 3-month liquidation heatmap from CoinGlass. The chart tracks clusters of leveraged positions that would be forced to close if the price moves into them. These zones often act as magnets for volatility. According to his assessment, the current structure looks unusually one-sided.

✨What the Heatmap Shows Right Now

The heatmap highlights a clear imbalance. Below the current XRP price, liquidation levels have largely been cleared. The October 10 flash crash flushed out a large amount of downside leverage. Since then, little meaningful liquidity has been rebuilt under the asset’s price. The lower half of the chart remains sparse.

Conditions look very different above it. From roughly $2.1 up to $3.2, the heatmap shows dense bands of liquidity. These bands represent stacked short positions and overleveraged traders who would face liquidation if the price rises. Arthur described this area as the largest concentration of liquidation levels XRP has seen in months.

Markets tend to move toward areas where forced orders sit. When liquidity pools cluster on one side, the price often compresses before expanding in that direction. That imbalance increases the probability of an upward move driven by forced liquidations rather than organic buying. Arthur views the current range as a compression phase rather than a breakdown.

✨What Comes Next for XRP?

If XRP begins to move into the $2.1 to $2.5 zone with momentum, liquidation cascades could follow. Each forced close adds market orders that push prices higher. That process can extend toward higher levels where liquidity remains thick, including the $3 to $3.2 range shown on the chart.

Failure to move higher would require new downside leverage to build. The heatmap does not show that yet. With little incentive for XRP to move lower, downside momentum loses fuel. Until liquidity builds for the digital asset, Arthur sees limited downside.

XRP may still look quiet on standard charts. According to Arthur’s reading of the data, that calmness masks a market positioned for expansion. The next major move is more likely to be driven by leverage than sentiment.

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