XRP Targets $5, But Weak Liquidity Could Halt Advance

• XRP May Face Liquidity Hole Above $5
• Ripple controls part of the liquidity of the XRP market
• Liquidity crisis could cause XRP price volatility

XRP, Ripple's token, is trading at $2,91, as analysts evaluate potential future moves that could boost or hinder its appreciation. The asset is expected to reach the $5 mark within the bull cycle predicted for 2025, but the market structure at this level raises concerns among traders and technical analysts.

According to the analyst known as Steph, a critical point of attention is what he describes as a "liquidity black hole" just above $5. In a post on the X network, he warned: “#XRP LIQUIDITY MAP SHOWS A BLACK HOLE ABOVE $5. BREAKOUT COULD BE VIOLENT.” The analysis was accompanied by a graph showing the liquidity shortage at the top of the speculated range.

This type of low liquidity pattern can trigger sharp price movements if there isn't enough volume to support buy and sell orders. This phenomenon, known in the market as a liquidity black hole, occurs when there is a significant lack of supply, creating risks of intense volatility.

In practice, this behavior resembles a bank run, where massive liquidity withdrawals can lead to occasional collapses. For XRP, this risk becomes even more significant due to Ripple's partial centralization of supply.

The company holds control of approximately 55 billion XRP tokens in an escrow account scheduled to release a maximum of 1 billion tokens per month. This represents approximately $5 billion that can be used to help smooth out market distortions, although this gradual release mechanism limits the company's flexibility in responding to sudden liquidity shocks.

As the market monitors the evolution of XRP's price, investors remain alert for signs that Ripple may play a direct role in maintaining stability, especially if the asset overcomes critical resistance levels in the next phases of the bull cycle.