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XRP Could Swing To $1.19 Or $20 After Order-Book Collapse, Analyst Warns
Last week's market crash revealed a critical fragility in major trading venues. Order book depth, essential for absorbing trades, thinned to almost nothing during the event. This phenomenon allowed relatively small market orders to cause significant price swings with minimal resistance. Analyst Dom highlighted XRP's price action as a prime example of this "liquidity evaporation." During the crash, XRP's order book on Binance Futures went from over $50 million in liquidity within 5% of the price to near zero. Millions of dollars in market sells then caused the price to plummet from $2.50 to $1.19 rapidly. This occurred because the bid side vanished, leaving an "air pocket" for sellers to exploit. The behavior wasn't unique to XRP, as seen in Dogecoin’s drastic price divergence across exchanges. This suggests market makers, who provide quotes and liquidity, played a significant role in dictating price movements. When liquidity vanishes above a price, the market can experience abrupt upside gaps just as easily as downside ones. Therefore, a rapid upward price surge for XRP, similar to its potential downside gap, is technically possible.
