Bitcoin staged a strong rebound following Thursday’s liquidity sweep, rallying as much as 10%. This sharp recovery significantly reduces the likelihood of a deeper, long-term correction and suggests that the recent dip may have been driven purely by liquidity withdrawals—a frequent occurrence in the digital asset market.

As is often the case, Bitcoin’s strength has triggered renewed optimism across the broader market, with several altcoins showing signs of bullish momentum. XRP is among the most promising, but its potential to reach a new all-time high will largely depend on whether the current support zone holds.

XRP technical analysis

XRPUSD - 1 Day Time Frame

Focusing on the daily chart of XRP provides good visibility for both the liquidity sweep and the key support zone. The Sell-Side Liquidity (SSL) sweep indicates that large market participants may have entered the market as price dipped below the marked swing low.

As historical behavior shows, significant liquidity tends to accumulate beneath major lows and above recent highs, making these levels attractive targets for institutional positioning. Additionally, as mentioned earlier, XRP has now formed a critical support area, which could provide the final confirmation for a valid long setup.

XRP price target

If you're looking to diversify your portfolio with XRP or simply reduce risk through structured trading, a well-defined Stop Loss (SL) is essential. For this scenario, the SL can be placed just below the internal low highlighted in the attached chart. This level may serve as a logical invalidation point for the current bullish structure.

On the profit side, its best that partial and final Take Profit (TP) levels align with Buy-Side Liquidity (BSL) zones. Just as downward moves tend to target SSL, upward price action often seeks BSL, where stop clusters above recent highs act as magnets.

This approach may improve the likelihood of progressive profit-taking, helping reduce risk while securing potential gains along the way.