XRP is showing signs it could surge significantly in October, outperforming other leading cryptocurrencies in recent weeks. While Bitcoin gained only 2.5% and Ethereum saw a 4% rise in mid-September, XRP climbed by 5%, signaling growing momentum for the token behind Ripple’s payment technology.

This outperformance hints at potential bullish catalysts forming around XRP, including favorable chart patterns and supportive macroeconomic conditions. Below are three key indicators that strengthen the case for a strong rally through the end of September and into October.

Signs of a Reversal: 40-Day Falling Wedge Pattern

XRP has recently broken out of a 40-day falling wedge formation — a technical pattern often interpreted as bullish. The convergence of trendlines around September 1 pointed to a potential shift in market sentiment, and price action soon confirmed it.

Historically, falling wedges tend to lead to price increases when accompanied by decreasing trading volume — a match XRP met. After trendlines converged in early September, XRP climbed to $3.12 by September 13 before adjusting slightly to around $3.03, where it currently sits.

This setup suggests a renewed upward trend. A similar wedge from January 17 to April 8 earlier this year lasted 80 days and led to an impressive 93% gain in just over three months — moving from $1.79 to $3.46. That translated to an annualized ROI of over 330%, underscoring how powerful these technical signals can be.

Psychological Resistance at $3 Now Broken

Another bullish cue lies in XRP’s recent breach of the $3 psychological resistance level. Generally, round-number price levels — like $3 — trigger concentrated buying and selling activity because they are easier reference points for traders and investors analyzing charts.

By climbing above $3 and peaking at $3.12 on September 13, XRP demonstrated buyer strength. Such breakthroughs suggest markets are ready to push further if momentum sustains. As Fidelity’s Trading Strategy Desk notes, support and resistance levels reflect shared expectations in trading psychology, impacting market behavior for both crypto and traditional assets.

This confluence of technical strength and behaviorally significant price markers strengthens the bullish narrative forming around XRP.

Rate Cuts Fuel Macro Tailwinds for XRP

The broader financial environment is also turning favorable for altcoins like XRP. The U.S. Federal Reserve’s interest rate cut on September 17 provides a potential liquidity boost to riskier assets. While Bitcoin may have already priced in this move — as multiple analysts have stated — XRP still stands to gain from the uptick in available capital and trading velocity that rate reductions can trigger.

Lower borrowing costs make riskier investments more attractive, encouraging traders to allocate more funds to assets like XRP. Even AI analysts, such as ChatGPT, have given a bullish forecast following the Fed’s latest move, suggesting the macro setup could be XRP’s launchpad for the next uptrend.

Combined, these signals — a bullish chart pattern, key resistance break, and favorable macro forces — paint an optimistic picture for XRP’s price action heading into Q4.

Related: XRP Price: $12M Max Pain for Bears

Visual representation of digital assets and blockchain payment systems supports XRP’s market outlook