In early January, sector-wide improvements are visible, with BTC hitting $93K and XRP to $2.37. It appeared that a rally had begun, and both technical and on-chain analyses for XRP suggested a significant bullish shift. This shift is characterized by unprecedented network growth coinciding with a decisive price breakout.
The underlying infrastructure of the XRP Ledger (XRPL) is reaching new heights, signaling high readiness for a sustained rally.
Massive Liquidity Inflow: XRPL DEX liquidity has hit a staggering $172.9 billion. Usually, when price drops, liquidity may thin out as traders exit. Instead, we see the opposite: capital is flooding into the order books. This suggests that market makers & large-scale providers are "positioning" themselves for a major volatility event or a sustained trend reversal.
Structural Shift: The frequency and size of liquidity spikes since Dec 10, 2025, suggest a significant entry of institutional-grade market makers. In simple terms, the ecosystem is much more attractive for "whales" and institutional players to execute large trades without destabilizing the price.
Growing Utility: This liquidity is backed by active usage, as the DEX transaction count has climbed to 890,268, indicating that the increased market depth is meeting real organic demand. This confirms that the liquidity isn't just "parked" but is actively being used.
Current price action is now being driven by aggressive buying and the removal of bearish pressure.
Dominant Buying Sentiment: The Taker Buy Ratio has crossed the 0.5 threshold. Values above 0.5 indicate that buyers are currently signaling dominant bullish sentiment.
Short Squeeze Momentum: A recent breakout from a falling wedge pattern was heavily supported by $5.8 million in short liquidations. These liquidations acted as a forced-buying catalyst, providing the momentum needed to sustain the price move above $2.30.
Written by TopNotchYJ