XRP fell about 8% since last week and dropped below the $3 psychological mark, trading near $2.74 after a sell-off that followed rejection at $2.95.
That shrinking range can build pressure. When that pressure releases, price can move quickly because there are fewer orders nearby to slow the move.
Expecting a large expansionary move from XRP soon (within months).
As the price action compresses, so does the orderbook, with most liquidity compressing into a tighter and tighter range.
This results in very large gaps in liquidity.
Market watchers point to liquidity gaps as a key reason any breakout might be sudden. Based on the explanation given by researchers, buy and sell orders cluster inside the compressed range.
That leaves thin order books just outside the band. If XRP breaks up or down, those thin spots mean less friction and a higher chance of rapid price movement.
Past cycles for XRP back up the basic idea that compression can precede big moves. In early 2017, XRP rose from about $0.0054 in February to roughly $0.43 in May — a move that amounted to a nearly hundred-fold gain over roughly three months.
No single price target was set by Sistine Research, but other analysts have published bold scenarios. Matt Hughes has mapped Fibonacci extension levels at $8.30, $13.39, and $26.63, and projects a potential 770% rally to some of those zones.
According to his math, a stake of 40,000 XRP could be worth more than $1,000,000 at the highest target. Those projections are being used by bullish traders as reference points, while skeptics warn that big targets come with big risks.
Meanwhile, Egrag Crypto, a well-known XRP bull, has reiterated that historical patterns provide clues and has criticized lower forecasts as misleading.
According to his commentary, the same setups that preceded previous rallies are reappearing now, and those who dismiss them may be underestimating upside potential.
Short-term traders will likely monitor support near current levels and watch order flow around $2.95.
A clear breakout above the tight band could trigger fast moves if liquidity gaps remain; conversely, a failure to hold support could lead to a quick drop.
Based on reports, the coming weeks could be decisive for XRP’s next directional move.
Featured image from Meta, chart from TradingView
