XRP is approaching what market commentator Will Taylor describes as a critical technical inflection point, with a tightening descending wedge, oversold weekly momentum and a lopsided liquidation profile all pointing to a market that may be close to exhausting the downside.
That is the core XRP takeaway in The Weekly Insight – Week 188, where Taylor argued that while crypto may still face one final flush lower, XRP is already trading in a zone that has historically aligned with major lows.
XRP May Be Close To A Bottom
Taylor framed the XRP setup against a broader macro backdrop that remains fragile but, in his view, not broken. In the same note, he argued the S&P 500 may still need to complete a deeper correction, volatility could rise further, and crypto altcoins may have “one more small dip” left before a more durable bottom forms. Even so, he suggested the market is already close enough to prior cyclical lows that downside from here may be limited relative to the potential upside.
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For XRP specifically, the focus was on structure. Taylor said he has been tracking “a potential descending wedge or parallel channel” on the weekly chart, with the key question now being whether XRP still needs “one more pullback into the bottom of that channel” into the $1.10 region or whether it can begin breaking higher from current levels and reclaim support on the way up.
He tied that pattern to momentum signals that, in his reading, are starting to look familiar. “This is on the weekly timeframe, and the weekly RSI has been touching the oversold area, just as it did at the absolute lows in 2022 during the bear market,” Taylor wrote. “So there are a few indicators here that are suggesting we are very close to the lows, if not already there.”
That matters because Taylor is not presenting XRP as an isolated chart. In the newsletter, he argued the broader crypto market is already trading near levels that, on weekly RSI measures, have historically marked either outright bottoms or zones within roughly 10% to 15% of them. In that context, XRP’s wedge is being read less as a standalone pattern and more as part of a market-wide compression phase that could be nearing resolution.
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The more distinctive part of the XRP thesis came from liquidation data. Taylor wrote that if XRP were pushed higher toward $3.60, more than $320 million in short positions would be liquidated. By contrast, a move down toward $0.39 would liquidate roughly $130 million in longs. That imbalance, in his view, creates a cleaner incentive to run price upward rather than lower.
“And if we pair this up with the amount of liquidity that we can see for XRP, cumulatively, if price is pushed up towards $3.60, we would liquidate over $320 million worth of shorts,” he wrote. “But if price is pushed down towards $0.39, it would only liquidate around $130 million worth of longs. So from a liquidity perspective, the opportunity for market makers and exchanges is clearly to the upside.”
That argument leans on the idea that once the current period of macro stress passes, XRP’s positioning could amplify any recovery. Taylor added that open interest is “reinforcing that view,” suggesting leveraged participation has not yet undermined the bullish setup.
The caveat is timing. Elsewhere in the newsletter, Taylor said he still expects one more modest dip across crypto before the market fully turns, and he linked the broader bottoming process to macro developments that could play out over the next four to six weeks. For XRP, that leaves two plausible paths: a final sweep toward the lower boundary of the wedge, or an earlier breakout that confirms the pattern without a deeper retest.
At press time, XRP traded at $1.35.
Featured image created with DALL.E, chart from TradingView.com
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