XRP is approaching a critical inflection point as short-term bullish patterns clash with heavy overhead resistance and cautious long-term signals. Recent chart data highlights a potential breakout toward $2.30, while liquidity barriers and historical trends continue to cap optimism.
XRP Price Forms Falling Wedge After Weekend Crash
XRP price has formed a falling wedge pattern on the 4-hour chart following a recent weekend sell-off. This structure is typically associated with bullish reversals, as price volatility compresses within converging trendlines. Despite the sharp downturn, the pattern has remained technically intact.
The analysis indicates that each new low has been accompanied by weaker selling pressure, signaling potential seller exhaustion rather than trend continuation. Momentum indicators reflect declining downside strength, reinforcing the notion that the recent drop may have been corrective.
As price approaches the wedge’s apex, a volatility expansion is increasingly likely. A confirmed breakout above the upper trendline, supported by volume, could pave the way toward the $2.10 to $2.30 resistance zone. Conversely, failure to break higher would keep XRP price locked in short-term consolidation.
XRP Price Faces Sell Walls Near Key Liquidity Zones
Analysts have pointed out significant overhead supply restricting upside movement. The chart identifies three major sell walls stacked below the $2.60 level, areas where large holders may distribute into rising price action.
Currently, XRP price trades just above a key demand zone, which has so far prevented deeper losses. However, repeated failures to reclaim higher resistance indicate that buyers remain cautious. Each advance has encountered consistent selling pressure.
From a structural perspective, this setup suggests a slow and measured price progression. Even if XRP price breaks higher in the near term, upside movement may occur in stages. Only a decisive move above $2.60 would significantly alter the broader market bias.
XRP Price Risks Deeper Pullback on Weekly Structure
On a higher timeframe, a more cautious outlook emerges based on historical patterns. A comparison with previous cycles in 2015, 2018, and 2022 reveals that losses of key trend support led to drawdowns exceeding 68% in each case.
Currently, XRP’s position near the 50-week moving average marks a critical level. Past failures to maintain similar support zones resulted in extended corrective phases. Moreover, current price curvature suggests slowing momentum rather than acceleration.
While XRP price remains well above historical lows, this structure raises concerns of potential distribution. Should weekly support falter, deeper retracements toward lower consolidation ranges become statistically more likely. Maintaining above this threshold will be necessary to invalidate the bearish historical comparison.
