XRP is experiencing increased price pressure, mirroring the broader crypto market’s drop, with the token falling 6% over the past week. This pullback has forced XRP to lose the $1.40 support level for now.
Despite this recent weakness, market analyst Ali Martinez posted on X (formerly Twitter) that a technical setup is forming on XRP’s 3-day chart that could result in a significant rally for the token.
XRP Key Break LevelsMartinez emphasized that this compression zone is essentially a “no-trade zone.” The idea, he said, is to wait and see how the market breaks before taking directional exposure. Instead of guessing, he wants confirmation through the structure of the next candles.
Specifically, he is watching for a clean 3-day candlestick close either outside the established range or back inside it. His key levels for that confirmation are the bounds of the squeeze zone, which Martinez described between $1.50 and $1.29.
On the other hand, a close below $1.29 would change the tone. Martinez stated that such a breakdown would invalidate the immediate bullish structure he is monitoring and could open the door for a deeper correction, with the altcoin potentially dropping toward the $1 level.
Regulatory Catalyst AheadWhile technical levels can guide near-term trading expectations, XRP’s path could also be influenced by regulatory developments in the United States.
In his assessment, a full Senate vote in June could strengthen expectations that the bill may receive presidential approval before the White House deadline on July 4. If that clearer regulatory timeline plays out, Daodu suggested it could help the token overcome resistance that has limited its performance for months.
Featured image created with OpenArt, chart from TradingView.com
