XRP (XRP) may be approaching a major technical turning point as a tightening descending wedge pattern, oversold weekly momentum indicators and a heavily skewed liquidation profile all converge near levels that market analyst Will Taylor says have historically aligned with cyclical lows.
XRP Wedge Pattern
Taylor laid out the case in The Weekly Insight – Week 188, his regular newsletter. He said he has been tracking what he called "a potential descending wedge or parallel channel" on XRP's weekly chart. The key question, in his view, is whether the token still needs one more pullback toward $1.10 or whether it can begin recovering from current levels.
He tied that structure to momentum readings that echo prior market bottoms.
"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.
He added that the broader crypto market is already trading near levels that, by weekly RSI, have historically marked bottoms or zones within 10% to 15% of them.
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Taylor's Liquidation Thesis
The more distinctive element of Taylor's analysis centered on liquidation data. He noted that if XRP were pushed toward $3.60, more than $320 million in short positions would face liquidation.
A move down to $0.39, by contrast, would liquidate only about $130 million in longs.
"From a liquidity perspective, the opportunity for market makers and exchanges is clearly to the upside," Taylor wrote.
He said open interest data reinforces that view and that leveraged positioning has not yet undermined the bullish setup.
Taylor still expects one more modest dip across crypto before the market fully turns, a process he linked to macro developments that could take four to six weeks. At press time, XRP traded at $1.34.
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