Ripple’s XRP token is working to recover after experiencing recent lows amid weeks of compression within a descending wedge formation. The market is currently encountering several resistance levels, where a breakout might indicate a short-term structural reversal.

Technical Analysis

Daily Chart

On the daily chart, XRP is still performing within a broad descending wedge structure, often indicative of a bullish reversal when backed by increasing volume. After bouncing off the $2.1–$2.2 support zone, XRP has made a move towards $2.5, coinciding with a crucial resistance area and close to the 200-day moving average. The 100-day moving average also presents a nearby resistance around $2.7, creating a significant confluence of resistance levels.

A daily closing price above $2.6 could signal potential confirmation of a breakout, favoring buyers and setting the stage for a move towards the $2.8–$3.1 supply range. Conversely, failing to surpass this level may result in rejection, keeping XRP trapped in its mid-term descending trend and potentially retesting the $2.3–$2.2 support level.

The RSI showing a break above the midpoint suggests that momentum is recovering, yet continued strength relies on confirming signals from price movements and volume expansion through the resistance levels.

Daily Chart

4-Hour Chart

The 4-hour chart indicates the effectiveness of liquidity release from the lower side of the structure. XRP has established a clear bullish divergence on the RSI following a dip below $2.2, indicating the end of selling pressure. The subsequent breakout attempt is aiming for the $2.55-$2.6 resistance area, coinciding with the previous lower high. Should the price successfully convert this area into support, a retest of $2.8 becomes increasingly probable.

In contrast, a rejection at this resistance would confirm it as a temporary seller’s base, driving a potential price drop back toward the $2.3 mid-range level before any further upward movement.

This formation reflects a classic breakout-retest pattern occurring after a prolonged compression phase, but confirmation is reliant on XRP’s behavior around the $2.5 pivot.

4-Hour Chart

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