XRP ‘Max Pain’ Setup Signals Possible Drop to $0.65–$0.75 Before Reversal
Crypto analyst EGRAG CRYPTO warns XRP may see a final liquidity sweep into the $0.75–$0.65 zone before any major reversal. The analyst’s wick-map framework shows multiple exchange lows already taken (Poloniex $2.26/$2.17, Gemini $2.10, Coinbase $1.77, Bitstamp $1.58) while three critical levels remain intact: KuCoin $1.08 (XRP/USDT), Bitfinex $1.00 (XRP/USD) and an aggressive Binance Perp low at $0.77. Technical indicators are mixed: XRP trades near $1.47 after a bounce from $1.16, MACD has a bullish crossover but remains in negative territory, and price sits below the middle Bollinger Band at $1.56. Historical mean-reversion (Super Guppy) patterns suggest an average retracement near 45%, supporting a move into the $0.75–$0.65 zone that would complete liquidity and preserve a larger ascending-triangle bullish structure. EGRAG CRYPTO outlines two scenarios: a fast sweep-and-reclaim reversal or a slower bleed toward the target zone before reversal. The analyst says long-term holdings are untouched and they dollar-cost average while trading the macro range. Key implications for traders: watch KuCoin, Bitfinex and Binance perp liquidity levels; a sustained break above $1.56 would be needed to confirm trend reversal; prepare for volatility and potential liquidity-hunting wick sweeps into sub-$1 levels.
Bearish
The article presents a near-term bearish outlook driven by a liquidity-sweep framework and historical mean-reversion patterns pointing to a potential drop into $0.75–$0.65. Key exchange lows on KuCoin, Bitfinex and Binance Perps remain untested; market-maker wick hunts historically precede reversals and amplify volatility. Current technicals are mixed—MACD crossover suggests buying pressure but both lines are still negative, and price is below the middle Bollinger Band at $1.56, which acts as resistance. Together these factors increase the probability of further downside or at least volatile testing of sub-$1 levels before any sustainable bullish confirmation (which would require a clear break above $1.56). Short-term impact: elevated volatility, potential stop hunts and liquidity grabs—favour defensive sizing, tight risk controls, and watch order-book levels on KuCoin/Bitfinex/Binance Perps. Long-term impact: a sweep into the identified zone could cleanse liquidity and set up a healthier structural base for a later rally, preserving the larger ascending-triangle bullish thesis if price reverses after the sweep. Comparable past events: wick-induced sweeps during liquidation cascades (e.g., previous XRP and altcoin corrections) led to short-term capitulation followed by mean-reversion rallies.