XRP Sweeps Liquidity as Analysts Eye Expansion Phase

• XRP swept Q4 2025 lows, clearing liquidity and hinting at a possible market expansion phase.
• AI models indicate XRP is consolidating after its 2025 rally, awaiting a breakout catalyst.
• Institutional ETFs hold nearly $1B in XRP, supporting potential upward momentum in March.

XRP may be entering a new expansion phase after sweeping key liquidity levels. The analysis follows a large rally in 2025 and a correction that tested major retracement levels. 

A chart shared on X by Coin Edition shows XRP had a major breakout in 2025 after trading sideways between 2022 and 2024. During that rally, the price jumped from about $0.50 to above $3.60, marking a strong expansion in its market cycle.

After reaching that peak, XRP’s price began to correct. The price then moved down into a retracement zone, showing a pullback from the earlier rally. One of the most important levels in this pullback is around $1.25, labeled CRT Low (CRT L) in the chart. This represents a 50% retracement of the entire rally.

Analysts often watch the 50% level because strong trends frequently pull back to this point before stabilizing. Coin Edition suggests the $1.25 area could act as a demand zone where buyers may step in.

For reference, XRP is currently trading around $1.39 after rising 3.8% in the past day and 2.4% over the past week, though it is still down 36% over the past year.

Liquidity Sweep Signals Possible Market Reset

The chart also shows a recent liquidity event that could influence XRP’s next move. XRP swept the Q4 2025 lows, clearing sell-side liquidity (SSL) below key support levels. 

In simple terms, the price briefly dropped below a previous low where many traders had placed stop-loss orders. This move suggests XRP may have completed the liquidity stage and could now be approaching the expansion phase.

AI Models Also Point to Consolidation

Several AI-driven market analyses describe similar conditions for XRP. Analysis from ChatGPT describes XRP as consolidating after a strong 2025 rally. The model noted that the asset surged above $3 before entering a correction in early 2026.

It also highlighted institutional developments, including the launch of spot XRP ETFs that attracted more than $1.24 billion in inflows. According to the model, markets often compress after large moves while liquidity builds for the next expansion.

Grok Market Review

A review from Grok AI places XRP trading between $1.37 and $1.42 in early March. That price range is roughly 60% below the July 2025 high of $3.65, but still about 28% above the 2026 low of $1.11.

Grok also identified a symmetrical triangle pattern, with resistance near $1.425 and support around $1.27, suggesting the market is waiting for a breakout catalyst.

Claude AI Assessment

Meanwhile, Claude AI highlighted repeated liquidity sweeps near the $1.96–$2.00 support area during early 2026. The model said such movements often occur during the manipulation phase of market cycles, when liquidity is collected before a directional move develops.

Claude added that XRP must reclaim higher resistance levels between $2.40 and $3.00 to confirm a stronger recovery.

ETF Activity Adds Institutional Context

Institutional participation in XRP has also increased through exchange-traded funds. Data shows U.S. spot XRP ETFs hold about $971.36 million in assets, with $1.22 billion in cumulative inflows since launch.

However, the ETFs recorded daily net outflows of $18.11 million yesterday,  March 9. This outflow marked the third consecutive net outflow.

Despite the short-term outflows, the ETF market still holds nearly $1 billion worth of XRP, representing 1.16% of the asset’s market capitalization.

Ultimately, XRP’s price may now be transitioning from liquidity sweep to expansion within the CRT framework. Analysts are watching the third week of March for signs of upward momentum.

Related: XRP Holds Near $1.35 as Oil Price Surge Dominates Global Market Reaction