XRP Could Gap To $1.19 Or $20 Amid Liquidity Issues
Recent market volatility has revealed significant liquidity issues in cryptocurrency trading, notably affecting XRP. Key observations include:
- Order-book depth on major exchanges thinned significantly, causing even small market orders to impact prices drastically.
- Independent analyst Dom highlighted that during the market crash, XRP's order book on Binance Futures showed a sharp reduction in liquidity from $50M to near zero.
- XRP's price dropped from $2.50 to $1.19 as liquidity vanished, demonstrating market fragility.
- This pattern is not unique to XRP; similar discrepancies were observed with Dogecoin, which saw prices diverge across exchanges like Binance and Coinbase.
- The phenomenon suggests that market-making algorithms can pull or reprice quotes rapidly, affecting liquidity and causing abrupt price movements both up and down.
- The analysis indicates that such liquidity dynamics could lead to potential price spikes in either direction under similar conditions.
At present, XRP is trading at $2.46, highlighting ongoing volatility in its market behavior.
