XRP Price Hints at Final Dip Before Potential Rally

XRP Price Faces Critical Juncture as Compression Phase Tightens

XRP is currently undergoing a compression phase, with technical analysis suggesting that its price action is nearing a pivotal point. This could see patience give way to panic before a clear direction emerges. The cryptocurrency’s chart presents a picture of uncertainty, but a crucial support level could determine XRP’s next move, along with a key price point needed for bullish confirmation.

Descending Broadening Wedge Pattern

XRP’s price has been trending downward, marked by lower highs since the start of the year. This extends to a correction from its July 2025 peak of $3.65. According to technical analysis by crypto analyst Egrag Crypto, this price action has formed a descending broadening wedge on XRP’s higher-timeframe chart.

A descending broadening wedge pattern often appears during late-stage accumulation phases, characterized by expanding volatility within downward-sloping boundaries, rather than indicating outright weakness. “This is NOT a random formation,” the analyst wrote. “Historically, these structures often produce final capitulation THEN violent expansion.” Egrag Crypto’s chart indicates a 57% probability of an upside resolution, compared to a 43% chance of further downside. Current price action supports a downward move, leading Egrag to describe the current phase as short-term bearish compression, even though the broader macro structure remains bullish unless the pattern breaks.

Key Levels to Watch

The most critical downside level on the chart is $1.11. Egrag identifies this as crucial support, acting as the boundary between normal volatility within the structure and a more significant breakdown. XRP is currently trading around $1.36, below moving averages including the EMA20 at $1.391, the EMA50 at $1.404, and the EMA200 at $1.684. A drop below $1.11 would weaken XRP’s technical position and potentially lead to a 70% decline to $0.32. While not the analyst’s base case, this scenario highlights the potential for a liquidity sweep if the descending broadening wedge breaks downwards.

The bullish outlook hinges on XRP confirming a move above $3. The analyst also noted that a weekly or monthly reclaim above the $2.65 to $3 range would be significant, as it would signal XRP breaking above the upper resistance area that has contained the broadening wedge.

The CLARITY Act, which passed the Senate Banking Committee on May 14 and awaits a Senate floor vote, could potentially drive an additional $4 billion to $8 billion in ETF inflows into XRP. This influx of capital could realistically trigger a retest of that zone. Should XRP reclaim and hold above $3, Egrag’s expansion targets range from $7 to $11.