At a Glance
- XRP is trading near $1.95, forming a falling wedge with a bullish RSI divergence.
- Analysts are watching for a breakout above $2-$2.05.
- Volume has risen 22% and futures open interest is up 1%.
- Why it matters: A breakout could signal a reversal in a 7% weekly decline.
XRP is showing signs of a potential shift after a recent dip to around $1.84. The token bounced and is now near $1.95, attracting attention from traders who see early buying momentum.
Chart Patterns and Momentum
On the 1-hour chart, XRP is moving within a falling wedge pattern, a shape that often appears near the end of a downtrend. The price touched the lower edge of the wedge before bouncing, and this move was supported by a rise in volume.
At the same time, the Relative Strength Index (RSI) is rising, even though the price remains in a downward channel. This rising RSI is what analysts call a “bullish divergence,” indicating that momentum is picking up even though the chart still shows a decline.
A crypto analyst, CW, explained the current setup:
> “$XRP is forming a downtrend. However, the RSI is rising, and buying is increasing. This indicates a bullish divergence is forming.” – CW
A break above the wedge’s top line, around $2-$2.05, would be the first sign of a possible trend reversal.
Key Levels and Resistance
According to chart analyst Ali Martinez, there are three key price levels to watch. Support is found at $1.78, while resistance is seen at $1.97 and $2.
- Support: $1.78
- Resistance: $1.97 and $2
These levels are critical. Until the asset breaks above the resistance levels, the downtrend remains active.
Volume and Open Interest
Volume across major exchanges has risen by over 22%, reaching $6.54 billion. Open interest in XRP futures also increased by nearly 1% to $3.40 billion, while options volume climbed by more than 15% to $4.32 million, according to CoinGlass’s data.
Over the last 24 hours, the price has risen 2%, but it is still down 7% over the past week.
Long-Term Outlook
Just three days ago, Crypto Patel pointed out that XRP is trading above what he calls a long-term breakout zone. He noted:
> “#XRP is trading above a confirmed multi-year breakout zone after completing a long accumulation phase.” – Crypto Patel
Patel mentioned a price expansion from $0.60 and shared targets ranging from $3.50 to over $10. He also stated that if XRP closes below $1.30 on the higher time frame, this longer-term setup could be invalidated.
Market Activity and Reserves
Additionally, over the past 12 months, XRP reserves on Binance have dropped by nearly 45%, falling from $10.16 billion to $5.55 billion, as News Of Los Angeles reported yesterday. This shift shows more XRP moving into private wallets, which may suggest longer-term holding by users.
Key Takeaways
- XRP is near $1.95 and forming a falling wedge with bullish RSI divergence.
- A breakout above $2-$2.05 could signal a reversal.
- Volume and futures open interest are rising, while the price remains down 7% over the week.
- Long-term targets are high, but a dip below $1.30 could invalidate the breakout.
- Binance reserves have dropped 45%, indicating a shift to private wallets.
Traders will likely keep a close eye on the support level at $1.78 and the resistance levels at $1.97 and $2 as the market decides whether a reversal is on the horizon.
