XRP’s Recent Price Action: A Potential Setup for a Rally
Forget the doom and gloom merchants; a closer look at XRP’s recent price action suggests a familiar pattern is playing out, one that could set the stage for a substantial rally. While headlines might focus on short-term dips, seasoned analysts are digging deeper, identifying key technical indicators that point towards a potential repeat of past bull cycles. The question now isn’t if XRP will move, but when, and to what magnitude.
Monthly Chart Analysis: Beyond the EMA Breakdown
Prominent crypto analyst EGRAG CRYPTO has recently weighed in on XRP’s price behaviour, offering a bullish counterpoint to prevailing bearish sentiment. The core of the argument rests on the interpretation of XRP’s interaction with the 33-period exponential moving average (EMA) on the monthly chart. While a breakdown below this key level is often seen as a negative signal, EGRAG CRYPTO contends that it’s merely a liquidity grab—a temporary dip to trigger stop losses and accumulate positions before a more significant upward move.
The analyst points to XRP’s recent test of the confluence of the central trend line and the 33 EMA in the $1.60-$1.61 range. Although the price briefly touched $1.50, the crucial point is that the monthly candle closed above $1.60. This, according to EGRAG CRYPTO, was followed by a liquidity sweep near $1.64 and the opening of February trading around $1.66, a cluster of activity that strengthens the argument for a tactical repositioning rather than a genuine bearish reversal. This analysis reframes the narrative, suggesting that the recent volatility is not a sign of weakness, but a necessary step in building momentum.
The Significance of Liquidity Grabs
The concept of "liquidity grabs" is central to EGRAG CRYPTO’s analysis. The analyst describes the move as the completion of Liquidity Grab #1, whereby price action dips into the confluence zone of the central line and the 33 EMA. Historically, this area has served as a pivotal reaction point for XRP during previous market cycles. Notably, similar interactions in the past have often preceded periods of expansion, suggesting that history could be about to repeat itself.
From this juncture, the analyst outlines two plausible scenarios based on historical patterns. The first is a relief bounce, followed by a second liquidity sweep, after which a broader expansion phase commences. The alternative, a more direct expansion, aligns with a cycle fractal observed in earlier market phases. The critical takeaway is that both scenarios point towards significant upside potential, contingent on market confirmation of the current structure. Essentially, this paints a picture of XRP coiling like a spring, ready to unleash pent-up energy once the right conditions are met.
Historical Parallels and Potential Price Targets
To quantify the potential upside, EGRAG CRYPTO draws parallels with XRP’s performance in previous bull cycles. The 2021 cycle, despite the shadow of the SEC lawsuit against Ripple, delivered a gain of approximately 340%. Even more impressively, the 2017 cycle saw a staggering 1,600% increase from comparable structural setups.
Applying these historical percentages to the current structure yields some eye-watering potential price targets. The lower expansion model, based on the 2021 cycle, projects prices near $7. The more aggressive historical comparison, mirroring the 2017 cycle, suggests a potential surge to as high as $27. While these figures are undoubtedly enticing, it’s crucial to maintain a degree of realism. EGRAG CRYPTO stresses that these targets are contingent on market structure and moving average behaviour.
Liquidity Grab #2: Building the Foundation for Expansion
EGRAG CRYPTO believes that Liquidity Grab #2 is now confirmed and active. Following a relief bounce, the price failed to secure a monthly close above $2.40, a key level that would have invalidated the second liquidity sweep. This failure, in the analyst’s view, validates the ongoing sweep and indicates that XRP is currently constructing the structural base necessary for a sustained expansion phase. It’s a process of building strength, shaking off weak hands, and preparing for a more significant move to the upside.
Looking back to June 2025, commentators noted the active engagement on X (formerly Twitter), indicating the community’s anticipation of XRP’s potential. This collective focus, combined with the technical analysis, creates a potent mix of optimism and calculated assessment.
Looking Ahead: Structure, Confirmation, Targets
EGRAG CRYPTO’s overarching message is one of cautious optimism. The analyst emphasises that the same structural setup, EMA interaction, and central line reaction observed in prior cycles are once again present. If the market has only completed the first liquidity grab, then the primary expansion phase may still be on the horizon. The analytical sequence remains consistent: structure first, EMA confirmation second, and price targets last. It’s a disciplined approach that prioritises observation and confirmation over speculation and hype.
For XRP holders, this analysis offers a compelling narrative. While short-term volatility is inevitable, the underlying technical indicators suggest that the current market structure is conducive to a significant rally. The key is to remain patient, monitor the market closely, and wait for the necessary confirmations before making any investment decisions. Although the crypto market is inherently risky, understanding the underlying technical patterns and historical precedents can empower investors to navigate their next steps effectively.
