XRP is stuck in a compression phase, and technical analysis suggests the price action may soon reach a tipping point where patience turns into panic before direction becomes clear.
According to popular crypto analyst Egrag Crypto, XRP has formed a descending broadening wedge on its higher-timeframe chart. This pattern often appears during late-stage accumulation phases, with expanding volatility constrained within downward-sloping boundaries. Egrag noted, 'This is NOT a random formation. Historically, these structures often produce final capitulation THEN violent expansion.'
The most critical downside level is $1.11. XRP is currently trading around $1.36, below its key moving averages. A loss of $1.11 could trigger an extreme 70% flush to $0.32. However, the bullish case begins above $3. A weekly or monthly reclaim above $2.65 to $3 would break the upper resistance of the wedge.
If XRP reclaims and holds above $3, Egrag's expansion targets range from $7 to $11. The CLARITY Act, which cleared the Senate Banking Committee, could drive an additional $4 billion to $8 billion in ETF inflows into XRP, potentially pushing the price to retest that zone.