The broader crypto rout this week has pushed XRP toward a key liquidity band near $1, with roughly $5 billion in liquidations across the market adding pressure. Analyst Will Taylor argues that most of the downside liquidity has already been swept, but larger pools still sit above current prices — making this a make-or-break moment for the token.
The liquidity picture
XRP traded at $1.14 as of press time, down sharply from levels seen earlier in the year. Taylor's analysis points to a concentration of liquidity just below the current range that's already been cleared, while thicker clusters above the price remain untouched. That setup often leads to sharp reversals or extended runs — depending on the direction of the next big move. The $5 billion in liquidations across crypto this week have accelerated the shakeout, hitting leveraged positions in both directions.
Macro headwinds stacking up
It's not just crypto-specific dynamics. The U.S. dollar index has been strengthening, the 10-year Treasury yield sits near 4.532%, and the Nasdaq looks overextended after a long run. For risk assets like XRP, that combination tends to squeeze capital out of speculative plays. Bitcoin has already swept key hourly downside liquidity, and Ethereum backtested a trend line while clearing much of the daily liquidity below price. XRP appears to be catching up to that pattern.
A utility shift on the horizon?
Taylor also suggests the broader market may be transitioning from pure speculation toward a utility phase, where institutions start valuing networks based on actual usage rather than narrative. If that thesis holds, XRP's role in cross-border payments could become a bigger factor in its price — but that's a long-term view. In the near term, the downtrend that's been in place since August 2025 remains intact, and this liquidity test near $1 will likely determine whether that trend continues or finally breaks.
