XRP is compressing into a tense technical spot where “patience” could quickly flip to “panic” before price direction becomes obvious, according to popular crypto analyst Egrag Crypto. The token’s higher-timeframe chart shows a pattern that captures both the current uncertainty and the potential for a dramatic move—one way or the other. What’s forming: a descending broadening wedge - Since the start of the year—and continuing a correction from XRP’s July 2025 peak at $3.65—price has printed lower highs that, on the higher-timeframe chart, form a descending broadening wedge. - Egrag describes this structure as a late-stage accumulation formation: volatility expands inside downward-sloping boundaries. Historically, these wedges can end with a final capitulation followed by a sharp expansion. - Egrag’s read assigns a 57% chance of an upside resolution versus a 43% chance of further downside. Key levels to watch - Critical support: $1.11. Egrag flags this as the boundary between “normal” volatility inside the wedge and a more dangerous breakdown. XRP is trading around $1.36 and sits below major moving averages (EMA20 $1.391, EMA50 $1.404, EMA200 $1.684), making the distance down to $1.11 notable. - Breakdown risk: If $1.11 fails, the analyst models an extreme flush scenario to $0.32 (around a 70% drop). He stresses this is not his base case, but it illustrates the liquidity sweep possible if the wedge breaks downward. - Bullish confirmation: A decisive move above $3 would mark the start of a bullish breakout. More broadly, a weekly or monthly reclamation above $2.65–$3 would signal that XRP has pierced the upper resistance zone that contains the broadening wedge and “changes everything,” per Egrag. Upside targets and catalysts - If XRP reclaims and holds above $3, Egrag’s expansion targets run from $7 to $11. - A policy catalyst may help: the CLARITY Act (cleared the Senate Banking Committee on May 14 and awaiting a Senate floor vote) could funnel an estimated $4–8 billion in ETF inflows into XRP—capital that could realistically help drive a retest of the $2.65–$3 zone. Bottom line XRP’s chart is in a compression phase with clear inflection points. Traders should watch $1.11 for downside integrity and $2.65–$3 (particularly $3) for bullish confirmation. The descending broadening wedge leans slightly toward an upside resolution in Egrag’s view, but a breakdown remains a meaningful risk until price proves otherwise.
XRP at Tipping Point: $1.11 Support vs $3 Breakout Potential
ChainGPTShare
Summary
XRP faces a critical juncture with $1.11 support and $3 breakout resistance in focus. A move above $3 could push XRP toward $7–$11, while a breakdown risks a slide to $0.32. Analyst Egrag Crypto gives a 57% chance of a breakout and 43% for a breakdown. The CLARITY Act may also impact ETF inflows.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.