XRP at Critical Technical Juncture: Analysts Identify Major Expansion Setup

Recent price action in XRP has positioned the altcoin at a crucial technical inflection point, with market watchers identifying potential for significant expansion ahead. The cryptocurrency currently trades at $1.41, down 4.43% over the past 24 hours, yet underlying technical structures suggest this weakness could precede a major rally if key support levels hold.

Understanding the Inflection Point: A Running Flat Correction Takes Shape

Technical analysts have identified a sophisticated pattern that has been developing across XRP’s daily and weekly timeframes. The running flat ABC correction—where the C wave fails to breach previous lows—typically signals underlying bullish strength. This structural pattern has been playing out over approximately 400 days, suggesting the altcoin may be transitioning from a prolonged consolidation base toward a new primary uptrend.

The key insight here involves wave count mechanics: as XRP retests critical support zones, each repetition of the wave structure provides additional confirmation for the bullish thesis. The altcoin’s price action over the past five trading days has been confined to a narrow $1.85-$2.00 range before the recent decline, but market structure remains intact for a reversal if support holds.

Macro Support: The $1.80 Level That Guards the Door

The most critical level keeping bulls in control is the $1.80 macro support zone. This territory has been defended for over a year, representing what analysts describe as a macro accumulation area. The significance of this level cannot be overstated—it marks the boundary between maintaining the current bullish structure and invalidating the entire technical setup.

If XRP closes below $1.80, retests it as resistance, and drops further, the pattern invalidates. However, as long as this level holds, the C wave in the correction structure “could be working in the bulls’ defense,” according to market analysis. Breaking below would suggest a different market regime entirely.

The Road to Expansion: Two Resistance Barriers to Watch

Between current levels and the next major target lies a two-tiered resistance structure. The first descending resistance line was previously broken in early 2025, which corresponded with a rally toward new all-time highs. The second descending resistance sits around $2.40.

Should XRP break through the first resistance line and consolidate above $2.40, the path becomes clear toward the $2.70 target. More importantly, the cryptocurrency appears to be forming a three-month falling wedge pattern—another technical setup typically associated with breakout moves. This pattern’s breakout level, tested during early January, is now being retested as support.

What Needs to Align for Major Expansion

For the expansion scenario to unfold, two conditions must align: XRP must defend the $1.80 macro support, and buyers must reclaim the descending resistance zones on the upside. The technical setup suggests these conditions could materializes if price structure remains intact. Once XRP breaks the resistance overhead, the target zone extends toward $2.70 and potentially higher levels.

The inflection point represents a binary outcome: either buyers prove the bullish structure is intact and a major expansion follows, or sellers defend the technical levels and the pattern requires further consolidation. Market watchers currently favor the bullish scenario if macro support holds through the current weakness.