What to Know:
- XRP is attempting to recover from recent lows after weeks of consolidation within a descending wedge pattern.
- The price is testing a critical resistance zone around $2.5, where a breakout could signal a short-term bullish reversal.
- Failure to break above $2.6 could lead to another rejection, potentially retesting the $2.2-$2.3 support zone.
Ripple’s XRP is showing signs of a potential recovery as it navigates a key resistance level. The digital asset has been consolidating within a descending wedge, a pattern that often precedes bullish reversals if supported by sufficient volume. Current market action suggests a pivotal moment for XRP, with traders watching closely for confirmation of a breakout.
On the daily chart, XRP’s price is approaching a crucial supply zone near $2.5, aligning with the 200-day moving average. A successful break above $2.6 could confirm a shift in market structure, potentially opening the door toward the $2.8-$3.1 range. The Relative Strength Index (RSI) has broken above the midline, signaling recovering momentum.
The 4-hour chart indicates that XRP efficiently cleared liquidity from the lower side of the structure. A bullish divergence on the RSI during the sweep below $2.2 suggested diminishing selling pressure. The current breakout attempt is targeting the $2.55-$2.6 supply area, a region that aligns with the last lower high.
Overall, the current structure resembles a typical breakout-retest setup following a period of compression. Confirmation of this pattern hinges on how XRP reacts around the $2.5 pivot, a level that could determine the short-term trajectory of the asset. Investors and traders should closely monitor price action and volume as XRP tests this critical resistance.
Source: Original article
