XRP is approaching what market commentator Will Taylor describes as a critical technical inflection point, with a tightening descending wedge, weekly oversold momentum and an uneven liquidation profile pointing to a market that may be close to running out of downside.
This is the main conclusion of XRP in The Weekly Insight – week 188 in which Taylor he argued that while the cryptocurrency may still have one more dip, XRP is already trading in a zone that has been consistent with major lows in the past.
XRP may be near the bottom
Taylor described the XRP setup in a broader macroeconomic context that remains breakable but, in his view, unbreakable. In the same note, he argued that the S&P 500 may still require a deeper correction, volatility may enhance further and altcoins may have “one more small dip” left before a more indefinite bottom forms. Still, he suggested that the market is already close enough to prior cyclical lows that further declines may be confined relative to potential gains.
In the case of XRP in particular, the focus has been on structure. Taylor said he is monitoring a “potential falling wedge or parallel channel” on the weekly chart, and the key question now is whether XRP still needs “one more pullback down that channel” to the $1.10 area, or if it can start to break out from current levels and regain support on the way up.
He linked this pattern to momentum signals, which are starting to look familiar in his reading. “This is a weekly chart and the weekly RSI is touching oversold territory, similar to what happened at the 2022 absolute lows during the bear market,” Taylor wrote. “So there are several indicators that suggest we are very close to the lows, if they are not already there.”
This matters because Taylor does not present XRP as an isolated chart. In the bulletin, he argued that the broader cryptocurrency market is already trading near levels that have historically marked either immediate bottoms or zones roughly 10% to 15% of them, according to weekly RSI measurements. In this context, the XRP wedge is read less as a stand-alone pattern and more as part of a market-wide compression phase that may be close to resolution.
A more distinctive part of the XRP thesis came from liquidation data. Taylor wrote that if XRP rises towards $3.60, over $320 million in tiny positions will be liquidated. In turn, a downward move towards $0.39 would result in the liquidation of approximately $130 million in long positions. In his opinion, this imbalance creates a better incentive to raise prices rather than lower them.
“If we compare this to the amount of liquidity we can see for XRP, in total, if the price rises to $3.60, we would liquidate over $320 million of short positions,” he wrote. “But if the price is pushed towards $0.39, it would only liquidate long positions of about $130 million. So from a liquidity perspective, the opportunity for market makers and exchanges is clearly favorable.”
This argument is based on the assumption that once the current period of macroeconomic stress passes, XRP’s positioning could strengthen any recovery. Taylor added that open interest “reinforces this view,” suggesting leveraged participation has not yet undermined the bullish setup.
The caveat is time. Elsewhere in the bulletin, Taylor said he still expects one more modest decline in the cryptocurrency market before the market fully reverses, and linked the broader bottoming process to macroeconomic changes that could take place over the next four to six weeks. For XRP, this leaves two likely paths: a final move towards the lower boundary of the wedge, or an earlier break that confirms the pattern without a deeper retest.
At the time of publication, XRP was trading at $1.35.
Featured image created with DALL.E, chart from TradingView.com
