XRP’s recent price stability may be masking a potentially devastating bearish pattern, according to new technical analysis. Despite the recent surge in open interest to $3.4B, a concerning exit liquidity formation suggests XRP could be headed for a significant correction.
Understanding the Exit Liquidity Pattern
Crypto analyst Oky_Bren has identified a critical market structure forming in XRP’s price action that bears striking similarities to previous major tops. The pattern, characterized by three distinct low points followed by a sharp price increase, has historically preceded substantial market corrections.
Key Pattern Components:
- Formation of three similar price lows (December 2024, February 2025, April 2025)
- Expected price spike to approximately $2.90
- Historical pattern suggests 70-80% subsequent decline
- Potential bottom target: $1.00 or lower
Historical Context and Market Implications
The last time this pattern emerged in 2021, XRP experienced a significant market correction. Current market conditions, including the influence of Donald Trump’s pro-crypto stance, have created similar market dynamics that could trigger another major selloff.
Technical Indicators and Price Targets
The analysis suggests several key price levels to watch:
- Current support level: $2.60
- Projected peak before correction: $2.90
- Initial support during correction: $1.50
- Ultimate bottom target: $1.00
Risk Factors and Market Considerations
Several factors could accelerate the potential downturn:
- Institutional profit-taking at higher levels
- Retail FOMO during the final push to $2.90
- Market imbalances created by recent political developments
- Historical pattern completion timing
FAQ Section
When could the XRP crash begin?
According to the analysis, the correction could initiate after XRP reaches approximately $2.90, though exact timing remains uncertain.
How long might the correction last?
Historical patterns suggest these corrections typically play out over 3-6 months.
What could invalidate this bearish scenario?
A strong break above $3.00 with sustained institutional buying could potentially invalidate the pattern.
Conclusion and Market Outlook
While XRP’s current price action remains relatively stable, investors should exercise caution given the formation of this historically significant pattern. Risk management and position sizing become crucial as the market approaches the projected peak around $2.90.
