XRP has experienced a 4% decrease in value over the last week in line with a general market downturn. Currently, the fourth-largest cryptocurrency is trading at $2.31.

Despite the overall bearish sentiment in the market, on-chain data suggests a possible short-term recovery for XRP.

There are signs indicating a potential upward movement for XRP as shown by Coinglass, with a concentration of liquidity noted at the $2.48 price level. This liquidity heatmap helps traders identify where leveraged positions may be liquidated, serving as key areas for market movement.

The high liquidity at the $2.48 level implies significant trader interest in either buying or closing short positions at that price, potentially leading to a price rally soon.

Additionally, the altcoin's positive funding rate at 0.0041% indicates a preference for long positions, suggesting that traders are optimistic about XRP's price increasing.

Analyzing XRP’s Directional Movement Index (DMI) on the daily chart further supports a bullish trend, with the positive directional index (+DI) currently positioned above the negative directional index (-DI). The +DI and -DI lines in the DMI indicator measure the strength and direction of price movements.

If the current trend persists, XRP's price could rally to $2.50. However, in case of a continued decline, the token's value may drop below $2.29 and trend towards $2.11.