The cryptocurrency market is making a notable recovery from the last week's volatility that pushed Ethereum (ETH) to a low of $3,839 before rebounding to around $4,200. Both Bitcoin (BTC) and Ethereum (ETH) are up by nearly 2% today, lifting upside sentiment across altcoins— including XRP (XRP).
XRP is back in green today with modest gains, and more importantly, the price action is hinting at the development of a bullish reversal pattern that could determine the token’s next major move.
Falling Wedge Pattern in Play
On the daily chart, XRP appears to be forming a falling wedge — a technical setup that often signals the end of selling pressure and the beginning of a potential bullish reversal.
The latest correction dragged XRP down to the wedge’s lower boundary near $2.70, a strong support level that has repeatedly held firm. Following this test, XRP has bounced back to $2.89, hovering just below the 50‑day moving average (MA) at $2.95, which has acted as a critical barrier for bulls.
A decisive close above this MA could be the first sign of renewed strength, potentially paving the way for a stronger rebound.
What’s Next for XRP?
If XRP manages to defend the wedge’s support base and closes above the 50‑day MA, the next logical target lies at the upper wedge resistance trendline. A confirmed breakout above this trendline, supported by a retest, could unlock further upside potential with the next key target sitting above $3.66.
On the flip side, if XRP faces rejection near resistance and fails to hold the moving average, the token may revisit the wedge’s lower support trendline before bulls attempt another push higher.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.