- Analyst warns XRP may drop before explosive move toward $8.5 target
- Bearish EMA signal suggests XRP could sweep liquidity before rally begins
- Falling wedge structure hints XRP preparing for major macro breakout
A widely followed crypto chart analyst highlighted a pattern that may shape the asset’s next major move. Notably, Egrag Crypto shared a detailed analysis indicating a potential market trap in XRP’s current structure, suggesting the asset could still experience short-term volatility before any broader upward expansion begins.
According to EGRAG, XRP recently printed a bearish crossover between the 21-day and 50-day exponential moving averages, a signal that historically reflects weakening short-term momentum and often appears before the market completes a final capitulation phase. The analyst referenced XRP’s previous cycle, where a similar technical crossover occurred, noting that price briefly declined afterward before establishing a lasting market bottom.
In that earlier market structure, XRP dropped roughly 17% after the bearish crossover appeared, creating a final downward movement that eventually preceded the start of a broader recovery phase. This historical comparison led the analyst to suggest that the current setup may follow a similar path before any sustained bullish momentum develops.
Technical Signal Points to Possible Final Downside Sweep
The current chart structure highlights a falling wedge formation that continues to guide XRP price movement while the asset trades inside gradually tightening support and resistance boundaries. Within this pattern, the projected support zone appears between the $0.91 and $0.85 range, which the analyst identified as a potential area where price could briefly move lower.
Also Read: XRP Flashes Rare Golden Cross on 2H Chart as Traders Watch $1.40 Breakout
Such a move would represent a liquidity sweep that often occurs near visible support zones where market participants place stop orders. The analyst explained that this type of movement can remove weaker positions from the market before stronger directional trends emerge.
At the same time, the analysis also outlined levels that could invalidate the bearish continuation scenario. A recovery above the $1.80 level would weaken the probability of another downside movement, while a weekly close above $2.00 would strongly indicate that XRP has already formed its cycle bottom.
Multi-Year Triangle Structure Suggests Possible $8.5 Target
Beyond the short term signals, the analysis also focused on XRP’s long-term chart formation that has developed through several years of consolidation. The chart shows XRP trading within a large symmetrical triangle pattern, with price action gradually compressing since the previous market cycle peak.
Measured move projections from this triangle formation produce a potential macro price target near $8.50 if a breakout eventually occurs. The chart also identifies intermediate resistance areas near $2.50 and $4.20, which could appear as temporary barriers if XRP begins moving toward the projected target.
XRP remains inside a structure that combines short term volatility with a long term consolidation formation. The analysis suggests a possible final sweep toward the $0.91 to $0.85 range before stronger momentum appears, while resistance levels above $1.80 and $2.00 continue acting as important signals that could indicate the market bottom has already formed.
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