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XRP Premium FVG Could Pull Price Higher In The Short Term, But There’s A Problem


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The price of XRP has been caught in a wave of uncertainty ever since it reached its cycle peak above $3.5 in 2025. The downtrend has been continuing, and now the price is already down more than 50% from its highs in 2025. Even with this, it seems that the bears are not done with the cryptocurrency, and the formation of a distinct Fair Value Gap (FVG) is pushing the cryptocurrency deeper into the bearish zone.

Map the current XRP trend

So far, it appears that the price of XRP is still stuck in a bearish structure, pseudonymous cryptocurrency analyst Quantitive Alpha shared in a post on TradingView. This has been characterized by the price of XRP recording lower highs, in addition to lower lows, indicating that the downtrend is stronger.

While this trend is important, there is also another development that could have a significant impact on the price of XRP as well. This is an outstanding FVG that could act as a price magnet, but it could ultimately be what pushes XRP to break down further from here.

According to the cryptocurrency analyst, XRP price could first move higher in a corrective move inside the distinct FVG gap. However, this will be budding in the rebalancing of the inefficiencies that have arisen and then the buy-side liquidity (BSL) sweep in at these levels.

Once the BSL level is crossed, that is when the real movement begins, because the next trend will determine whether the bears will remain in control or whether the bulls will be able to finally take control.

Why the decline is likely to continue

According to the cryptocurrency analyst, the first move towards premium FVG is only part of the broader move, which is still very bearish. Explaining how this happens, the analyst says that once the imbalance is filled, the price will likely reverse back to continue the downward trend.

Ripple price
Source: Trading View

This is because XRP will start targeting sell-side liquidity (SSL) that lies below the current lows. Thus, this plays into the classic cycle of digital assets which initially moves towards taking any liquidity accumulated there, before moving back down to continue its trend.

There is still a chance that XRP price will eventually turn bullish, and this would be a sustained breakout of the outstanding FVG zone. This may ultimately indicate that the cryptocurrency has now turned from a bearish trend to a bullish trend on the higher time frame (HTF) structure.

XRP price chart from Tradingview.com
Price recovers from decline Source: XRPUSDT on Tradingview.com

Featured image from Dall.E, chart from TradingView.com

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