XRP is compressing into a tense technical spot where “patience” could quickly flip to “panic” before price direction becomes obvious, according to popular crypto analyst Egrag Crypto. The token’s higher-timeframe chart shows a pattern that captures both the current uncertainty and the potential for a dramatic move—one way or the other. What’s forming: a descending broadening wedge - Since the start of the year—and continuing a correction from XRP’s July 2025 peak at $3.65—price has printed lower highs that, on the higher-timeframe chart, form a descending broadening wedge. - Egrag describes this structure as a late-stage accumulation formation: volatility expands inside downward-sloping boundaries. Historically, these wedges can end with a final capitulation followed by a sharp expansion. - Egrag’s read assigns a 57% chance of an upside resolution versus a 43% chance of further downside. Key levels to watch - Critical support: $1.11. Egrag flags this as the boundary between “normal” volatility inside the wedge and a more dangerous breakdown. XRP is trading around $1.36 and sits below major moving averages (EMA20 $1.391, EMA50 $1.404, EMA200 $1.684), making the distance down to $1.11 notable. - Breakdown risk: If $1.11 fails, the analyst models an extreme flush scenario to $0.32 (around a 70% drop). He stresses this is not his base case, but it illustrates the liquidity sweep possible if the wedge breaks downward. - Bullish confirmation: A decisive move above $3 would mark the start of a bullish breakout. More broadly, a weekly or monthly reclamation above $2.65–$3 would signal that XRP has pierced the upper resistance zone that contains the broadening wedge and “changes everything,” per Egrag. Upside targets and catalysts - If XRP reclaims and holds above $3, Egrag’s expansion targets run from $7 to $11. - A policy catalyst may help: the CLARITY Act (cleared the Senate Banking Committee on May 14 and awaiting a Senate floor vote) could funnel an estimated $4–8 billion in ETF inflows into XRP—capital that could realistically help drive a retest of the $2.65–$3 zone. Bottom line XRP’s chart is in a compression phase with clear inflection points. Traders should watch $1.11 for downside integrity and $2.65–$3 (particularly $3) for bullish confirmation. The descending broadening wedge leans slightly toward an upside resolution in Egrag’s view, but a breakdown remains a meaningful risk until price proves otherwise. Read more AI-generated news on: undefined/news