Why XRP Could Be the Surprise Winner of Q2

As the second quarter is about to end, the price action of XRP may be preparing for a surprising breakout. This altcoin has been stuck below $2.50 for over a month, but new technical indicators show optimism is forming.

While the broader cryptocurrency market is moving sideways, XRP is quietly building upward price momentum beneath the surface. This analysis has the details.

Traders Pay Attention to XRP's Price Surge

XRP's liquidation heatmap shows notable liquidation concentration around the $2.20 price zone. At the time of writing, the token is trading at $2.14, only 2.8% lower than this liquidation cluster.

Liquidation heatmaps are visual tools traders use to identify price levels where large leveraged position clusters are likely to be liquidated. These maps highlight high-liquidity areas, typically color-coded to show intensity, with brighter areas representing greater liquidation potential.

These liquidity zones act like magnets for price action, as the market naturally moves towards them to trigger stop orders and open new positions.

In XRP's case, the liquidation cluster around $2.20 shows strong trader interest in buying or closing short positions at that price. If upward momentum builds, this setup increases the likelihood of a short-term price surge.

Furthermore, the decline in XRP's Network Profit/Loss (NPL) supports this price surge prospect. On the 30-day moving average, it stands at 70.27 million, dropping 11% over the past week.

NPL measures the total profit or loss investors realize when moving their coins. When NPL drops into negative territory, it indicates many holders are moving their tokens at a loss rather than a profit.

Historically, this trend reduces selling pressure, as investors typically avoid selling assets while at a loss. For XRP, the recent NPL decline suggests most investors are waiting for a recovery instead of cutting losses.

XRP Aims for Breakout as Buyers Target $2.29

At the time of writing, XRP is trading at $2.13. If buying pressure increases and this altcoin breaks out of its sideways trend, it could rise to $2.29.

A successful breakout past this price could push XRP to $2.45.

However, if selling pressure intensifies, XRP token's price could extend poor performance and drop to $2.08. If demand remains low at this point, the altcoin could fall further to $1.99.