XRP is hovering around $2.94, a critical technical point. The token is confined in a falling wedge pattern, compressing the price between lower highs and higher lows. This formation typically ends in a strong move. Traders now await confirmation of either a breakout or breakdown.
At $2.9445, XRP is down 1.60% on the day. Yet, it clings above the 200-period moving average at $2.94, offering hope to bulls. These wedge setups often result in explosive moves. The key is holding support while eyeing a possible breakout above resistance at $3.00.
Bullish breakout or bearish breakdown ahead?
The major resistance area is in the range of $3.00 to $3.20. A daily candle closing above this point may indicate a bullish breakout. As a result, the target can be raised to $3.50 or even further. On the contrary, a failure at $3.00 may lead to a situation where the bears gain control over the market.
The support zone at the bottom starts from $2.91. A decisive move below this level would be a sign of the market’s weakness. The next important targets are between $2.66 and $2.57. Notably, these levels are close to the 99-period exponential moving average on the 4-hour chart, suggesting that there may be a further decline if support is broken there.
XRP short-term rebound possible if bulls react fast
If XRP holds $2.91 and the RSI climbs past 35 with increasing volume, a rebound is likely. Price could revisit the $3.00–$3.05 zone, with immediate resistance near $3.09. This range remains critical for XRP’s short-term direction. It’s a fight between bulls and bears.
Analyst EGRAG CRYPTO noted that a bottom is likely to be confirmed only by a prolonged close above the level of $3,12 on the daily chart. Under this condition, XRP might go into a new bull run. Otherwise, the loss of this value $2.65, can explain panic sales and break current bullish patterns.
In spite of the decline below the 3.00 price, XRP is still trading within the falling wedge. The moving averages are bearish, the RSI is stagnant, and the inflows are slowing down, which is a terrible outlook over a short time. The chart has to be clear now.
Traders are watching closely, momentum favours the side that breaks the wedge, and traders will be wise to keep an eye on it. The short-term trading strategy should be consolidation between 2.91 and 3.05. A strong position of one side or the other will determine the direction XRP will take.
The existing arrangement is an indicator of a do-or-die situation. XRP requires volume, increasing RSI, and moving back above 3 bucks to regain its power. That’s why risks are still skewed towards the downside and sentiment remains weak, until then.
