Alex Dudov
⬤XRP is moving through a period of structural compression after losing support at the 21-period EMA on the higher timeframe. The chart shows price rejecting from the $2.20 macro resistance zone and sliding into a descending channel while keeping the retracement relatively controlled. Analysts describe this as compression, not collapse.
⬤Several technical signals point to weakening downside momentum. Recent candles show shrinking bodies and reduced bearish expansion, which traders typically read as seller exhaustion rather than active distribution. XRP has gone through comparable corrective phases after strong impulse moves before re-entering expansion. Price is currently consolidating near the $1.40-$1.50 range, forming the descending compression structure below the $2.20 resistance.
⬤Two scenarios stand out from the current structure. The first involves a liquidity sweep toward the $0.80-$1.00 zone, aligning with the lower compression boundary and liquidity pockets below recent lows. The second suggests XRP could quickly flip bullish if price reclaims $1.65-$1.80, which would signal renewed strength and invalidate the descending structure entirely.
⬤The $2.20 level remains the single most important threshold on the chart. Reclaiming it would reopen the path toward $2.50 and potentially confirm the start of a new expansion phase. As noted in XRP Faces Critical Test at $2.68 Resistance, getting back above key zones has historically been the inflection point between extended consolidation and the next major leg up.
Alex Dudov
