The XRP bullish engulfing pattern is strengthening investor optimism as the cryptocurrency approaches a key resistance zone. Currently forming a symmetrical triangle on the weekly chart, XRP’s price structure signals potential upward momentum if critical levels are breached. Analysts believe the technical signals mirror setups that historically preceded major rallies.

Symmetrical Triangle Suggests Imminent Breakout

XRP has spent nearly a year consolidating within a symmetrical triangle pattern. This formation is bringing the price closer to the upper resistance line, which sits just below $3.44. According to market analyst EGRAG CRYPTO, a breakout beyond this level could open the door to a rally targeting $7.34, which aligns with the technical range of the triangle.

EGRAG observed the emergence of multiple bullish engulfing candles along this structure. Historically, these candlestick patterns have signaled the beginning of strong upward trends in XRP’s past cycles, particularly in early 2025. He noted that a new bullish engulfing candle on the weekly chart could propel XRP to fresh all-time highs.

Chart shows XRP approaching critical resistance level within triangle structure. Source: EGRAG CRYPTO/X

Currently, XRP remains firmly above the Bull Market Support Band, visualized as a curved ribbon on the weekly chart. This zone continues to act as solid support, helping maintain structural integrity as the asset compresses within tighter price action. Market participants are closely watching this band, as any breach could signal a change in momentum.

Lower Support Levels Provide Downside Safety Net

Analysts are also tracking two key support levels in the event of downward pressure. The first is at $2.60, close to the midpoint of the current triangle. The second sits at $2.37, aligning with the 0.618 Fibonacci retracement level from previous swings. EGRAG noted that $2.37 could offer an ideal buying opportunity for those waiting on a lower entry point. He stated, “If we hit $2.37 before the next rise, it’s your chance to buy cheap.”

At press time, XRP traded around $2.72, reflecting a modest 3% intraday decline and an 11% drop over the previous week. Over the same timeframe, trading volume hovered above $9 billion, indicating continued interest despite the cooling price.

Compression Phase Indicates Building Momentum

Additional analysis from Sistine Research underscores a pattern of price compression. As XRP experiences its third compression cycle since the last U.S. election, price action is narrowing further, suggesting coiled potential energy. Notably, each of these compression events has occurred at higher price levels than prior cycles, pointing to constructive long-term momentum.

Order book data reflects this trend, as liquidity is clustering tightly around current prices. Sistine noted, “As the price action compresses, so does the orderbook, with most liquidity compressing into a tighter and tighter range.” This structure results in large gaps beyond the immediate support and resistance zones, potentially leading to rapid moves once a new direction takes hold.

The pattern bears resemblance to previous cycles from 2017, 2021, and 2025—all of which were followed by significant price expansions. Based on these precedents, both technical analysts and on-chain reviewers are positioning for potential volatility in the weeks or months ahead.

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

For more insights, visit the full tweet from Sistine Research.