Zach Rector Warns of XRP Liquidity Sweep After Supreme Court Delay and New Tariffs
Crypto analyst Zach Rector reported a weekend liquidity sweep in XRP that pushed the price down to $1.85 after a mid-January recovery to $2.20. Rector links the volatility to expectations around a U.S. Supreme Court ruling on President Trump’s tariffs — a ruling he had incorrectly predicted would validate the tariffs and push XRP toward $2.27–$2.40. The decision was delayed, and President Trump announced new tariffs related to Greenland, increasing market uncertainty. With U.S. equity markets closed for Martin Luther King Jr. Day, Rector noted that only crypto markets and some CME futures were open, limiting immediate market responses. He cautioned that the liquidity sweep may be a short-term adjustment and said futures reopening will determine XRP’s next move. Traders are advised to watch futures reaction, key support/resistance levels around $1.85–$2.40, and policy announcements that could drive short-term liquidity shifts. This is informational only and not financial advice.
Neutral
The immediate market impact is neutral. The report documents a liquidity sweep that caused a short-term price drop to $1.85, driven by external macro events (a delayed Supreme Court ruling and new tariffs). Such policy-driven uncertainty typically increases volatility but does not by itself create a clear directional trend for XRP. Key factors supporting a neutral view:
- Short-term liquidity event: The drop appears tied to a liquidity sweep during a market holiday when many traditional markets were closed. These events often reverse when full markets and futures reopen.
- No fundamental adverse news for XRP or Ripple: The catalysts are macro policy and timing, not project-specific negative developments.
- Potential for renewed volatility: Reopening of CME futures and further policy announcements can cause either upward recovery or additional selling, depending on order flow.
Historical parallels: Similar holiday/liquidity-sweep moves have produced quick rebounds (e.g., isolated weekend dumps during low liquidity in 2020–2022) when broader markets reopened. Conversely, policy shocks (unexpected tariffs or legal rulings) have sometimes sustained volatility until clarity arrives.
Trading implications: Short-term traders should monitor futures order books, volume spikes, and support at ~$1.85 and resistance near $2.20–$2.40. Use tight risk management for intraday trades. Longer-term holders should wait for confirmation of price stabilization or clear macro resolution before changing core positions.