XRP Forms Bullish Pattern as $2.55 Target Looms

XRP is currently showcasing a bullish price setup that could lead to significant gains, according to recent analysis by a seasoned market observer. The cryptocurrency has seen steady gains this week, and analysts believe it could break through its current resistance if key supports hold firm.

As of July 3, XRP is trading at $2.28 after a 3.98% intraday gain and a 4.22% increase over the past week. The asset has moved within a narrow band, ranging from $2.08 to $2.30 in recent sessions, reflecting cautious optimism across the market.

Falling Wedge Signals Possible Breakout

An analyst known as Mad Whale on TradingView has identified a falling wedge on XRP’s 12-hour chart, a common technical pattern that signals a potential reversal in trend. Falling wedges are defined by downward-sloping, converging trendlines that may presage a bullish breakout when price eventually pushes above the upper boundary.

This configuration has been forming for some time. The lower boundary of the wedge has provided support in several instances: on May 6 when XRP touched $2.08 and rebounded, on June 5 at $2.06, and most recently on June 23 at $1.96. Meanwhile, the upper resistance level effectively held at $2.33 on June 16, preventing a breakout until recently.

XRP Briefly Breaks Out—$2 Support Still Crucial

Mad Whale notes that XRP has already briefly surpassed the wedge’s upper boundary, climbing to $2.32. This event has been interpreted as a preliminary sign of bullish momentum. However, the analyst cautions that XRP is still trading close to an important support zone at $2.00. This area is not only a technical floor but also a psychologically significant round number.

If XRP experiences a pullback toward this region, it would mark a 12.28% drop from current trading levels. Historically, this support has attracted substantial buying activity. If the level holds again, it could potentially set the stage for a fresh bullish reversal.

Should XRP sustain a rebound from this level, Mad Whale projects an upward target of approximately $2.55. Achieving this would yield an 11.84% gain from its present value.

Emotional Holding Could Be Harmful

Beyond technical analysis, Mad Whale also offers critical trading psychology insights in his educational section. He stresses that holding onto losing positions without solid technical backing is often emotionally driven and can be damaging. He bluntly advises that “holding is suicide” in certain scenarios, urging traders to reevaluate why they’re staying in a trade.

“Hope is not a strategy,” he warns, emphasizing that emotional capital can deplete more rapidly than one’s trading balance. By ignoring clear warning signs such as declined volume, bearish RSI divergence, or fading institutional interest, traders risk irrational decision-making. He cited a case where buyers of a heavily-promoted alternative token witnessed nearly a 50% loss in under a week due to failure to react to these cues.

Recommended Tools for Strategic Trading

To aid in better decision-making, Mad Whale recommends four specific TradingView tools that help identify when a trend is likely to reverse or lose strength:

• Volume Profile
• RSI Divergence
• Smart Money Concepts
• Session Volume indicators

Each of these tools offers a lens into market behavior, helping traders validate whether ongoing price movement aligns with broader trends or just fleeting momentum. When used effectively, they can indicate optimal entry and exit points, enhancing overall strategy and minimizing emotionally driven trades.

Related: Expert Advice: Sell XRP If You’re Confused

In closing, the analyst encourages traders to discern whether their commitment to a position stems from sound technical reasoning or simply denial. While conviction has its place in trading, blind hope often leads to preventable losses. With XRP forming promising technical patterns, traders have a window of opportunity—provided they stay grounded in strategy and logic.