Crypto commentator Bird has published an analysis of XRP based on liquidation heatmaps, arguing that recent price behavior reflects structured market mechanics rather than random trading activity.
In his post, Bird explains that liquidation heatmaps visualize where leveraged long and short positions are concentrated, highlighting price zones where forced buying or selling is likely to occur if those levels are reached. According to Bird, these clusters represent areas of heightened liquidity where stop losses and liquidations are triggered in large volumes.
Bird attributes his growing focus on this analytical method to insights shared by Cryptoinsightuk, noting that heatmaps help clarify why price often accelerates sharply in specific directions.
He emphasizes that areas with low liquidity tend to be exited quickly by price, while zones with dense liquidity act as magnets due to the volume of capital positioned there. In this setup, price movement is driven by incentives to access and clear these liquidity pools.
Take a look at this XRP chart.
I’ve been trying to study iquidation heatmaps a lot more over the last few months because of @Cryptoinsightuk, and this chart explains why price often moves the way it does.
This isn’t random.
The coloured bands basically show where leveraged… pic.twitter.com/CEAeFlX2Ec
— Bird (@Bird_XRPL) January 19, 2026
Recent Long Liquidations and Market Rotation
In his assessment, Bird points out that XRP recently experienced a liquidation event affecting leveraged long positions. He states that these longs were taken out during the latest downturn, resulting in a rapid sell-off that pushed prices lower.
According to his interpretation, this phase represents a typical market rotation, where one side of the trade is cleared before the price seeks the opposing side’s liquidity.
Bird explains that after longs are liquidated, the price often stabilizes and reorients toward areas where short positions are heavily stacked. He notes that this pattern has repeated across multiple market cycles and assets, reinforcing his view that the process is systematic. The heatmap attached to his post highlights lighter liquidity zones below current price levels and a significantly denser cluster above.
Short Liquidity Concentration Near $4.20
A central focus of Bird’s analysis is a large concentration of short-side liquidity positioned around the $4.20 level. He describes this area as a dense liquidity pocket, indicating a substantial number of short positions that would be forced to close if the price moves upward into that range.
Bird argues that this creates a strong incentive for market makers to guide prices toward that zone, as accessing deep liquidity allows positions to be closed efficiently.
Based on this structure, Bird states that he remains confident that the current XRP move is not complete. He asserts that the presence of heavy short liquidity above current levels supports the likelihood of further upward price action, rather than a sustained decline.
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Expectations for Higher Prices
Bird concludes by expressing confidence that XRP is positioned to challenge all-time highs, citing the anticipated short squeeze toward the deepest liquidity bands highlighted in red on the heatmap. He maintains that price is drawn to where the most capital is at risk, and in this case, that risk is concentrated above the market.
Supporting this view, an X user known as Ghost commented that the recent sell-off should be viewed as a professional liquidity event. Ghost stated that institutions sold XRP near $3, drove the price down to around $1.80 to remove weaker participants, and are now repositioning at lower levels to facilitate a move higher. According to Ghost, real market movements are governed by liquidity dynamics rather than sentiment alone.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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