Is XRP Price Preparing for A Rally to $11 Despite the Liquidity Dry Up?

Key Insights:

• Analyst sees XRP price breakout from a descending broadening wedge pattern, all the way to $11 if it breaks past $3.
• Institutional demand for XRP products remained strong despite weak price action, with XRP ETFs attracting over $82 million in net inflows.
• On-chain data showed XRP liquidity on Binance has fallen to its lowest level since January 2020.

Ripple’s native cryptocurrency XRP has been flirting with $1.35 for a while, while keeping investors confused regarding its next move. However, with XRP ETF inflows staying strong, market experts continue to stay bullish for an XRP price rally going ahead. Some experts say that the Ripple chart setup shows the probability of a rally to $5 and further to $10.

XRP Price Chart Setup Shows Possible Rally to $11

Popular crypto analyst EGRAG Crypto stated that XRP price is currently trading within a descending broadening wedge pattern. The analyst has assigned a 53% probability that the setup could eventually push the price to the $7 to $11 range.

According to the analyst, XRP price has declined approximately 11.6% since May 14 while continuing to form lower lows near $1.61, $1.37, and $1.10 between April 2025 and February 2026. This has helped to establish the lower boundary of the wedge pattern.

EGRAG Crypto noted that XRP would first need to break above the upper resistance trendline near $3. Following this, it can continue further with its bullish momentum.

The analyst also identified the $1.11 level as a critical support zone. He warned that failure to hold this level could trigger a deeper correction on the downside to $0.32.

Furthermore, blockchain analytics firm Santiment reported that sentiment around the Ripple crypto has dropped to extreme negative levels. The social commentary has also turned out to be largely bearish.

In the past, such fear-driven sentiment has led to XRP price recoveries and trend reversals. Analysts noted that periods of elevated skepticism often reduce selling pressure after weaker market participants exit their positions.

XRP ETFs Outperform Bitcoin, Ethereum ETFs

For the second consecutive week, institutional inflows into spot XRP ETFs have outpaced both Bitcoin and Ethereum products. It comes despite the weakness in the XRP price action.

According to the latest flow data, XRP ETFs recorded net inflows of approximately $82.54 million over the past two weeks. On the other hand, Bitcoin ETFs saw net outflows of roughly $2.26 billion, and Ethereum ETFs posted outflows of approximately $471.1 million.

The report noted that XRP ETF products attracted around $60.5 million in inflows on May 15, followed by another $22.04 million on May 22. As a result, the total cumulative inflows since inception have reached $1.41 billion.

Market observers highlighted that institutional inflows into XRP products continued even as XRP price sentiment remained negative. Analysts suggested that institutional investors may be positioning ahead of potential catalysts tied to crypto market regulation. Furthermore, the increase in institutional activity on the XRP Ledger can serve as an additional catalyst.

XRP Price Eyes Upside As Binance Liquidity Tanks to Jan 2020 Levels

On-chain data from CryptoQuant shows that the 30-day liquidity index for XRP on Binance has continued to decline as the XRP price trades near $1.34. According to the data, the liquidity index has fallen to approximately 0.043, marking its lowest reading since January 2020.

CryptoQuant noted that the liquidity index previously reached levels above 3 and 4 between 2022 and 2024. This period saw elevated trading activity and stronger market volatility.

The liquidity conditions for the Ripple crypto have weakened significantly in recent months. In the past, such conditions of lower liquidity have led to quick price swings. Now, with bullish sentiment all over, the XRP price upside can’t be ruled out.

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