Ripple’s token is attempting to recover from its recent lows after weeks of compression inside a descending wedge. The market is now testing key resistance, where a breakout could confirm a short-term structural reversal.
Technical Analysis
By Shayan
The Daily Chart
On the daily timeframe, XRP continues to trade within a large descending wedge formation, a structure that often precedes bullish reversals when supported by volume expansion.
After rebounding from the $2.1–$2.2 demand zone, the price has reclaimed ground toward $2.5, aligning with a crucial supply zone (order Block) and close to the 200-day moving average, while the 100-day MA remains slightly overhead near $2.7. This confluence represents a critical resistance cluster, combining dynamic resistance (MAs), a prior supply block, and the wedge’s structural ceiling.
A daily close above $2.6 would mark a potential breakout confirmation, shifting market structure in favor of buyers and paving the way toward the $2.8–$3.1 macro supply range. However, failure to break this level could lead to another rejection, keeping XRP inside its mid-term descending pattern and possibly triggering a retest of the $2.3–$2.2 support zone.
RSI has broken above the midline, signaling recovering momentum, yet sustained strength will depend on confirmation from price action and volume expansion through resistance.
The 4-Hour Chart
The 4-hour chart reveals how efficiently liquidity was cleared from the lower side of the structure. XRP formed a clean bullish divergence on RSI during its sweep below $2.2, signaling exhaustion of selling pressure. The subsequent breakout attempt is now targeting the $2.55-$2.6 supply area, which also aligns with the last lower high. If the price successfully flips this region into support, a retest of $2.8 becomes increasingly likely.
Conversely, a rejection at the current zone would confirm it as a short-term seller’s base, potentially driving a pullback toward the $2.3 mid-range level before any further upside continuation.
Overall, this structure mirrors a typical breakout-retest setup following prolonged compression, but confirmation hinges on how XRP reacts around the $2.5 pivot.
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