TLDR
- XRP forms a Wave 4 Elliott triangle, signaling corrective consolidation, not trend failure.
- A completed triangle raises odds of a Wave 5 expansion upon confirmed breakout.
- XRP against BTC multi-year compression suggests long-term breakout risk is building.
- Dense overhead liquidity increases the chance of a sharp short-squeeze on breakout.
XRP price is consolidating as analysts highlight technical structures pointing to a potential expansion phase. Short-term Elliott Wave patterns, long-term compression against Bitcoin, and rising liquidity pressure are aligning across multiple charts. Together, these signals suggest that Ripple’s XRP is approaching a decisive moment once consolidation resolves.
XRP Price Forms Wave 4 Triangle Structure
According to analyst More Crypto Online, the XRP price is currently completing a Wave 4 corrective triangle within an Elliott Wave framework. Such triangles typically appear after impulsive advances and reflect temporary balance rather than trend failure. The structure indicates momentum cooling without meaningful structural damage.
The internal sub-waves respect converging trendlines and show diminishing volatility. This behavior suggests that neither buyers nor sellers have full control, which is typical near the end of corrective phases. Importantly, downside continuation remains muted, signaling absorption of selling pressure rather than expansion.
From this perspective, a completed Wave 4 triangle statistically increases the probability of a Wave 5 move. However, confirmation depends on an impulsive breakout from the pattern. Until that breakout occurs, XRP price remains range-bound but structurally biased toward expansion once compression releases.
XRP Against BTC Compression Signals Long-Term Breakout Risk
Meanwhile, according to analyst Amonyx, the XRP against BTC pair highlights a multi-year compression structure that has persisted since XRP’s historical peak. Price has trended lower with steadily declining volatility, a combination often associated with base formation rather than ongoing distribution. This prolonged contraction suggests equilibrium is nearing resolution.
Volume has faded significantly during this period, indicating speculative excess has largely been removed. Such conditions often precede asymmetrical moves once momentum returns. Relative strength against Bitcoin becomes critical here, as even modest rotation could trigger a structural shift.
The upside projection reflects a measured move from the compression range. While not predictive on its own, the setup improves risk–reward dynamics. In this context, XRP price performance against Bitcoin may act as an early signal for broader market repricing.
Liquidity Stacking Raises Short Squeeze Risk
Additionally, analyst ChartNerd’s liquidity heatmap highlights dense overhead liquidity clusters above current XRP price levels. Price remains compressed below descending resistance, creating conditions where short positions dominate. This imbalance increases vulnerability to forced covering if resistance breaks.
Downside follow-through has weakened despite sustained selling attempts. This indicates declining bearish conviction while liquidity continues to build above. Such setups often resolve through sharp moves driven by positioning rather than gradual accumulation.
If XRP price breaks above the descending trendline, entry into these liquidity pockets could trigger rapid short liquidations. This type of reaction is typically swift and exaggerated. Without the breakout, however, the squeeze scenario remains conditional rather than active.
