XRP Premium FVG Could Pull Price Higher In The Short Term, But There’s A Problem

The XRP price has been caught in a wave of uncertainty since hitting its cycle peak above $3.5 back in 2025. The trend downward has been persistent, and now the price is already down by more than 50% from its 2025 highs. Even with this, it seems that the bears are not done with the cryptocurrency, and the formation of a premium Fair Value Gap (FVG) pushes the cryptocurrency deeper into the bear territory.

Mapping out the current XRP trend, it appears the price is still stuck in a bearish structure. Pseudonymous crypto analyst Quantitive Alpha shared in a TradingView post that this has been characterized by the XRP price putting in lower highs and lower lows, suggesting that the downward trend is more powerful. While this trend is important, there is also another development of interest that may have a significant impact on the XRP price.

This development is the premium FVG that could act as a magnet for the price, but eventually could be what sends XRP crashing even lower from here. According to the crypto analyst, the XRP price could first move upward in a corrective move into this premium FVG gap. However, this would be in a bid to actually just rebalance the inefficiencies that have arisen and then sweep Buy-Side Liquidity (BSL) at these levels. Once this BSL is swept through, this is when the real move begins, because the next direction will determine whether the bears remain in control or if the bulls are able to eventually take over.

Why a bearish continuation is likely, the analyst explains that once the imbalance is filled, then the price is likely to reverse again to continue the bearish trend. This is because XRP will begin targeting the Sell-Side Liquidity (SSL) that lies lower than the current lows. Thus, this plays into a classic cycle of a digital asset initially moving toward taking out the premium FVG before plunging further into the bearish territory.

The formation of the premium FVG is a significant development because it indicates that there is a large imbalance in the market. This imbalance could attract more sellers, pushing the price even lower. However, the initial upward move into the FVG could provide a temporary respite for the price, as it attempts to rebalance the inefficiencies.

In conclusion, while there may be a short-term upward move for XRP due to the premium FVG, the overall trend remains bearish. The bears are likely to continue their dominance once the Buy-Side Liquidity is swept through, and the price targets the lower Sell-Side Liquidity levels. This suggests that the cryptocurrency's journey downward may not be over yet, and investors should remain cautious in their decisions.