XRP Direct Expansion and Liquidity Grab Details as Price Touches 33 EMA

XRP recently recorded a second liquidity grab on the monthly timeframe following the recent price drop below the pivotal 33-month EMA.

The recent development occurred on the back of the latest wave of bearish pressure. Specifically, after the most recent recovery attempt failed on Jan. 28, XRP collapsed alongside the broader crypto market, recording four consecutive intraday losses. Within this period, XRP has dropped 16%, having lost the $1.8, $1.7 and $1.6 levels.

Notably, amid this decline, XRP recorded what appeared to be a second liquidity sweep around the 33-period exponential moving average (EMA) on the 1-month chart, as well as an ascending central support trendline. Interestingly, this formed part of a larger structure that may eventually lead to XRP’s price expansion phase.

Key Points

• XRP has crashed to $1.58, as the latest bearish wave triggered a collapse below the $1.8, $1.7, and $1.6 levels in one fell swoop.
• With this drop, XRP has declined 16% since Jan. 28, having retested an important area around the 33-period exponential moving average and an ascending central trendline.
• Market data indicates that this retest may be part of a much larger structure that could lead XRP to a price expansion phase.
• Historical data suggests this expansion phase may trigger price rallies toward $7 or $27 depending on the period XRP mirrors.

XRP Seeing Renewed Bearishness

EGRAG Crypto, a well-known chartist, highlighted this development while speaking on the recent bearish wave. For context, since the start of this year, XRP has faced a major roadblock each time it attempts to recover the losses from Q4 2025. During this period, it has consistently seen lower highs.

Notably, the first attempt witnessed resistance at $2.41 on Jan. 6, leading to seven days of consecutive intraday losses. The second attempt saw a roadblock at $2.19 on Jan. 14, resulting in steeper declines to $1.80 by Jan. 25. The third and latest attempt faced a roadblock at $1.93 and has since led to the ongoing downward push.

XRP Touches 33 EMA and Central Trendline

In his analysis, EGRAG called attention to the intersection of the 33-period EMA and a central ascending trendline that may be pivotal to XRP. Importantly, amid the ongoing downward push, XRP touched the 33 EMA and the central line, sweeping the liquidity at this area before eventually bouncing back up. 

For context, the EMA and central line intersect at the $1.6 to $1.61 price area, which XRP dropped to before recovering to $1.64. The recovery effort allowed XRP to begin this month at a price of $1.66 after successfully sweeping the liquidity at the intersection.

Why is The Liquidity Sweep Important?

Interestingly, EGRAG confirmed that this recent liquidity sweep was actually the second one within a larger structure. For context, the first liquidity sweep occurred when XRP dropped to $1.61 in April 2025. 

In an earlier analysis, EGRAG suggested that XRP could take one of two paths. The first path would involve a second liquidity sweep after the April 2025 one, before the expansion phase. Meanwhile, the second path would involve a direct run to greater price levels.

With XRP now completing the second liquidity sweep, it shows that the crypto asset is following the first path. Notably, XRP has since dropped to the current price of $1.58. From here, EGRAG believes XRP would start building the structure necessary to enter the expansion phase. According to him, the recent breakdown does not mean game over.

History Points to Two Possible Targets

The market analyst expects the expansion phase to lead to higher prices for XRP. Citing historical data, he suggests $7 or $27. For context, XRP witnessed a similar pattern to the current trend twice in its history: first in 2017 and then in 2021.

Notably, the 2017 pattern led to a 1,600% increase in price during the expansion phase, while the 2021 pattern resulted in a milder 340% rise. If XRP follows the 2021 pattern, the 340% jump would lead to $7 in the forthcoming expansion phase. However, following the 2017 would result in a 1,600% rise to $27.