XRP Bullish Reversal Signals Point to Short-Term Rally
XRP (Ripple) may be primed for a short-term price increase, with technical indicators suggesting potential reversal from recent selling pressure.
Key takeaways:
-
At least two classic technical patterns are flashing bullish reversal signals on XRP’s charts.
-
$2.80–$2.95 remains a key support zone, with analysts calling it a “make-or-break” level.
Two bullish divergence signals on the XRP/USD four-hour candlestick chart indicate weakening sell pressure:
While XRP’s price has been forming lower lows, the relative strength index (RSI) – a momentum oscillator – is registering higher lows. This disconnect suggests that recent downward momentum is decelerating.
On the daily chart, XRP formed a Dragonfly Doji candlestick pattern at recent lows, signaling indecision and a potential bottoming process.
This specific candlestick pattern features a long lower wick, little to no upper shadow, and open/close prices clustered near the daily high, interpreted as strong buyer intervention.
XRP previously surged 65% upward after a simulated Dragonfly Doji formed in April.
Meanwhile, another bullish signal emerges on the four-hour chart as XRP flashes a Falling Wedge pattern.
This consolidation pattern, characterized by converging trendlines and declining price highs/lows, may signal accumulation before a breakout. XRP recently rejected a prior support level near the 200 four-hour exponential moving average.
If XRP breaks decisively above the Falling Wedge’s upper trendline (around the $2.95-$3.07/0.236Fib resistance zone), a 20% rally targeting the $3.60-$3.65 range could materialize.
Conversely, maintaining prices below the critical $2.80-$2.95 support zone validates the bearish case and prevents a sustained recovery.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
