XRP is approaching what market analyst Will Taylor describes as a critical technical inflection point, with a strong bearish limit, oversold weekly momentum and an oversold payment profile all pointing to a market that may be close to exhaustion.
That’s XRP’s total taken from Weekly Insight – Week 188, where Taylor argued that while the crypto may be facing one last flush lower, XRP is already trading in a historically significant downtrend.
XRP May Be Nearing Bottom
Taylor plotted XRP’s setup against a broader backdrop that remains fragile but, in his view, not broken. In the same letter, he said that the S & P 500 may need to complete a deep correction, volatility may increase further, and crypto altcoins may have “one small dip” left before long-term lows. However, he suggested that the market is already close enough to the downside that the potential downside from here is limited compared to the potential upside.
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For XRP specifically, the focus was on structure. Taylor said he has been tracking a “potential bearish or contiguous channel” on the weekly chart, the key question now is whether XRP still needs “one more pullback below this channel” around the $1.10 area or whether it can start moving up to current levels and find support on the upside.
He tied that pattern to the pressure signals, which, as he read, began to look familiar. “This is on a weekly basis, and the weekly RSI has been touching oversold territory, as it did in 2022 during the bear market,” Taylor wrote. “So there are quite a few indicators here that suggest we’re very close to bottoming out, if not already.”
That is important because Taylor does not present XRP as an isolated chart. In the newsletter, he argued that the broader crypto market is already trading near levels that, in weekly RSI measures, have historically marked vertical bottoms or areas within 10% to 15% of them. In that context, the XRP wedge is read less as an independent pattern and more as part of a broader market compression phase that may be nearing resolution.
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A very different part of the XRP thesis came from the liquidation data. Taylor wrote that if XRP is pushed higher to $3.60, more than $320 million in short positions will be liquidated. Conversely, a drop to $0.39 would wipe out about $130 million long. That imbalance, in his view, creates a clean incentive to raise prices instead of down.
“And if we pair this with the amount of money we can see in XRP, cumulatively, if the price goes up to $3.60, we will issue over $320 million in shorts,” he wrote. “But if the price is reduced to $0.39, it will only wipe out about $130 million.
That argument hinges on the idea that once the current period of extreme stress has passed, XRP’s stance may amplify any recovery. Taylor added that the open interest “reinforces that view,” suggesting strong participation has not undermined the bullish setup.
The caveat is time. Elsewhere in the newsletter, Taylor said he still expects one modest dip across all cryptos before the market fully turns around, and linked the broader bottoming process to major developments that could play out over the next four to six weeks. For XRP, that leaves two viable options: a final sweep to the lower boundary of the wedge, or an earlier exit that confirms the pattern without a deep retest.
At press time, XRP traded at $1.35.
The featured image was created with DALL.E, a chart from TradingView.com
