XRP is navigating choppy waters after peaking above $3.50 during its 2025 cycle high and subsequently losing more than half of that value. Momentum remains tilted toward the downside, and a newly formed “premium Fair Value Gap” (FVG) has traders debating whether the token is merely correcting or gearing up for another leg down.
Pseudonymous TradingView analyst Quantitive Alpha charted the current structure as decisively bearish: XRP has been printing lower highs and lower lows, a classic sign that sellers are still dominant. The analyst highlights the premium FVG as a key technical feature that could dictate the next moves.
How the analyst thinks this plays out
- Corrective lift into the premium FVG: XRP may first bounce higher to fill the FVG — essentially rebalancing a market inefficiency.
- Liquidity sweep at the FVG: That upward move could sweep Buy-Side Liquidity (BSL) trapped above recent levels, luring stop orders and retail entries.
- Continuation of the downtrend: Once BSL is cleared, the analyst expects a reversal that resumes the bearish trend, with price targeting Sell-Side Liquidity (SSL) below the current lows.
This sequence — move up to take liquidity, then reverse and push lower — is a familiar pattern in crypto market structure and is central to Quantitive Alpha’s bearish thesis. That said, a different scenario is possible: a sustained breakout through the premium FVG would signal a break in the higher-timeframe (HTF) bearish structure and could mark the start of a bullish reversal.
In short: short-term relief rallies into the FVG could be traps if sellers reassert control, but a clear, lasting close above the premium FVG would be the clearest evidence that bulls are winning the higher-timeframe battle.
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