Cryptoinsightuk analyst Will Taylor argued in a March 24 video that XRP may be lining up for a significant upside liquidation event, even though near-term price action remains fragile. He emphasized this is not a claim that XRP has definitively bottomed or that downside risk is gone; rather, the interplay of leverage, sentiment, and liquidity appears skewed in a way that could force a sharp move higher later in the cycle.
Taylor’s case rests largely on liquidation maps. He pointed out meaningful liquidity beneath current prices—particularly in the $1.25 to $1.21 area, with further bids down toward $1.00 and $0.94. More important, however, is the much larger concentration of liquidity sitting above the market on higher timeframes, extending up to roughly $3.59.
Quantifying the imbalance, Taylor highlighted roughly $20 million of short-term liquidity near $1.24 on the downside versus approximately $300 million near $3.38 and another roughly $300 million near $3.60 on the upside. That gap in potential stop- and liquidation-targets is a central reason he remains biased toward a bullish outcome despite weak price tone.
He tied the liquidity picture to derivatives market behavior, noting eight consecutive weeks of negative aggregated funding for XRP, with a ninth week possible if the current week closes negative. According to Taylor, the only comparable period was at the 2022 bear-market low, suggesting participants may be underestimating prevailing sentiment and structural positioning.
Taylor warned that a bullish squeeze is not guaranteed to occur in a straight line. XRP could remain compressed inside a descending-wedge or bull-flag-like structure, and a deeper flush is still possible before any decisive rally. He suggested that if price compresses lower—for example toward $1 by June—the eventual breakout could be far more explosive than a move from current levels.
Potential triggers for a squeeze include progress on crypto legislation such as the Clarity Act, broader monetary easing from the Federal Reserve, or other U.S. policy developments that improve liquidity conditions. Taylor expects some narrative or policy catalyst could emerge that would be positive for markets and set the stage for a forced short-covering move.
At the time of his commentary, XRP was trading around $1.42. Taylor’s view frames the current setup as asymmetric: notable downside liquidity exists, but much larger upside liquidation clusters leave the potential for a sizable short squeeze if a catalyst and enough leverage converge.