Is It Time to Buy XRP?

Yesterday’s announcement of reciprocal tariffs by the U.S. triggered a wave of bearish price action across the cryptocurrency market—a move we had anticipated in our previous outlooks. For those who have been following our recent analyses, this development likely came as no surprise.

But where do things stand now? Has the bearish correction run its course, or is there potential for a bullish, impulsive rebound?

4-hour time frame analysis

XRPUSD - 4 Hour Time Frame Analysis

To best illustrate the current market dynamics, we’ve chosen XRP as a representative example. The cryptocurrency closely mirrored yesterday’s sharp downturn, which was significant enough to establish a key resistance zone, highlighted in orange on the attached chart.

This resistance zone now acts as a crucial indicator for what may come next. If the price fails to break above it, bearish momentum is likely to persist in the coming days.

However, a decisive close above this zone could signal the beginning of a market recovery, potentially paving the way for a renewed bullish phase. XRP's response to this zone will be pivotal in determining the broader market direction.

XRP price target

If the bearish scenario continues to unfold, we see strong potential for a drop toward the Sell-Side Liquidity level—an area where a high volume of Stop orders may be triggered. These zones often act as short-term support and can mark key turning points.

Conversely, if the market shifts and a bullish breakout occurs, this would open the path toward key Buy-Side Liquidity levels. These levels consist of Stop orders above recent highs and frequently serve as natural targets for bullish momentum.

In either case, clearly identifying these liquidity levels enables traders to define realistic and strategic profit targets, based on how price interacts with the broader market structure.