XRP recently dropped to $1.32, clearing out sell-side liquidity before staging a swift reversal. The digital asset bounced back to $1.40, leaving traders closely monitoring whether the bulls can maintain this momentum. Crypto analyst Xaif (@Xaif_Crypto) analyzed the recent price activity and detailed what a potential continuation might entail.
The accompanying chart operates on a 1-hour timeframe and incorporates two primary indicators: the BigBeluga Smart Money Concepts tool and the LuxAlgo Buyside and Sellside Liquidity indicator. Both metrics assist in mapping out liquidity distribution relative to current market prices.
What the Chart Shows
The pivotal moment centers on the sweeping of sell-side liquidity around the $1.32 mark. Following a strong rally that pushed XRP past $1.50, the token experienced a sharp sell-off, cutting through multiple support levels down to $1.32. A Break of Structure signal materialized at this trough, validating the liquidity sweep. Following this, the price rebounded significantly, climbing back to its current level near $1.40.
Several resistance levels persist overhead. Supply zones are designated on the chart near $1.42, $1.47, $1.52, and $1.55, each highlighted in red to indicate previous zones of selling pressure.
$XRP swept sell-side liquidity near $1.32 before reversing sharply and recovering to $1.40.
A reclaim of $1.42 could open the path toward the $1.47 buy-side liquidity zone.
The next move depends on whether bulls can reclaim $1.42 and turn resistance into support. https://t.co/ZWWpliLuFp pic.twitter.com/1hrQYBdFGb
— Xaif Crypto (@Xaif_Crypto) October 9, 2026
The $1.42 Level Is the First Test
According to Xaif, $1.42 stands out as the most critical threshold to observe presently. He noted, “A reclaim of $1.42 could open the path toward the $1.47 buy-side liquidity zone.” Situated just above a former resistance barrier, the $1.47 region harbors substantial buy orders, meaning a successful breach would tilt short-term momentum in favor of buyers.
He added, “The next move depends on whether bulls can reclaim $1.42 and turn resistance into support.” Because XRP trades below that threshold, the bullish setup requires a decisive breakout followed by successful defense during any subsequent pullback to be confirmed.
Institutional Demand Adds Context
Beyond the technical indicators, institutional participation surrounding XRP continues to expand. Xaif pointed out that spot XRP exchange-traded funds pulled in $8.17 million in net inflows on October 8, bringing cumulative net inflows to $1.80 billion. Total net assets stand at $1.56 billion alongside $65.44 million in trading volume, providing a strong fundamental backdrop to reinforce the technical analysis.
What Comes Next?
The descent to $1.32 successfully targeted and removed downside liquidity, while the subsequent bounce establishes a clear roadmap for buyers. Regaining and holding the $1.42 level places the $1.47 target firmly within reach. The framework is clearly defined; success now hinges entirely on market execution.