XRP has dropped approximately 8% since the previous week, falling below the critical $3 level to trade around $2.73 after a sell-off that occurred following its rejection at $2.94.
As per Sistine Research, a pattern of tightening price action — referred to as a compression phase — is re-emerging, which could lead to a significant price movement once buyers or sellers break out of the confined range.
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Reemergence of the Compression Phase
According to Sistine Research, XRP is currently experiencing its third major compression phase since the US elections held last November. In simpler terms, price fluctuations have been tightening as trading has become more concentrated within a narrower band.
This narrowing range could create pressure. When this pressure is released, the price may move swiftly due to the lack of nearby orders to impede the movement.
A significant expansionary move from XRP is expected soon (within months).
As the price action constricts, the order book does too, with most liquidity shrinking into an increasingly tight range.
This results in considerable gaps in liquidity.
XRP is currently in its third compression since… pic.twitter.com/hjRVzeK8wc
— Sistine Research (@sistineresearch) September 24, 2025
Market analysts highlight liquidity gaps as a primary factor that could lead to a sudden breakout. As noted by researchers, buy and sell orders tend to cluster within the compressed range.
This creates thin order books just outside this band. If XRP experiences a breakout, these thinner areas mean less resistance and a greater likelihood of rapid price movement.
Historical Patterns Indicate Potential Significant Gains
Previous cycles for XRP support the notion that compression can precede notable moves. In early 2017, XRP surged from around $0.0054 in February to about $0.43 in May — translating to a nearly hundred-fold gain in roughly three months.
Analysts’ Predictions Fuel The Discussion
While Sistine Research did not establish a specific price target, various analysts have proposed ambitious scenarios. Matt Hughes has identified Fibonacci extension levels at $8.30, $13.39, and $26.63, projecting a potential 770% increase to some of those levels.
According to his calculations, a holding of 40,000 XRP could potentially exceed $1,000,000 at the highest target. These projections serve as reference points for bullish traders, although skeptics warn that lofty targets come with considerable risks.
#XRP – Patterns Repeat, But You Keep Ignoring It! Target: $15-$33 🎯:
▫️The last phase of the #XRP bull run always leaves significant clues, and I’m not overlooking them! 🧐 While many in the #XRP community are panicking, I see a different picture. Some are selling off their… pic.twitter.com/j2D5iY5m5L
— EGRAG CRYPTO (@egragcrypto) September 25, 2025
‘Patterns Repeat, But You Keep Ignoring Them’
At the same time, Egrag Crypto, a prominent XRP bull, has emphasized that historical patterns offer valuable insights while criticizing lower price forecasts as misleading.
According to his analysis, the same setups that preceded past rallies are becoming visible again, and those who dismiss them might be underestimating the potential for gains.
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What Traders Should Keep an Eye On
Short-term traders are likely to focus on support levels near the current price and monitor order flow around $2.95.
A decisive breakout above the confined range could lead to rapid movements if liquidity gaps persist; conversely, a failure to maintain support might result in a swift decline.
Reports suggest that the upcoming weeks could prove crucial for XRP’s next directional move.
Featured image from Meta, chart sources from TradingView
