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The XRP price is reportedly positioning for a potential breakoutas it forms a textbook Falling Wedge pattern, which a crypto analyst calls a perfect bullish setup. After a successful retest of a keg buy zone, technical indicators suggest that XRP is preparing for a powerful move toward the $3.7 level soon. Falling Wedge Setup Signal XRP Price Breakout
XRP is currently entering what Robert Mercer, a TradingView crypto analyst, describesas the perfect breakout setup following a prolonged period of consolidation. This technical structure suggests that XRP could potentially experience a sharp rally from its current price of $2.25 to the $3.70 level. Related Reading XRP Price Remains Bullish Above $2, This Falling Channel Says $3.8 Is Coming 3 days ago
Notably, on the 2-day XRP price chart, Mercer noted that the cryptocurrency has been consolidating within a Falling Wedge patternsince late December 2024. Since establishing a local bottom at $2.11 in the same timeframe, the altcoin has repeatedly tested this bottom level without breaking below it in a sustained manner.
The $2.11 price zone has also acted as a reliable horizontal support level throughout the six-month Falling Wedge formation. Meanwhile, XRP’s price action has been gradually compressing within the wedge pattern, indicating reduced volatility and increasing pressure near the wedge apex. Source: Robert Mercer on Tradingview
Looking at the TradingView analyst’s chart, it appears that XRP is now approaching the Falling Wedge resistance at the upper boundary, which coincides with the $2.45 level, where a buy retest has occurred. This convergence is viewed as a potential confirmation zone. If buying momentum continues and XRP closes decisively above $2.45, the breakout would confirm the end of the Falling Wedge and potentially initiate the cryptocurrency’s next upward move.
Mercer highlights that XRP’s current bullish structureis a simple yet perfect setup. And based on this setup, price targets above the wedge are projected in several stages, with $2.98, $3.36 and $3.71 serving as resistance levels based on historical price action and technical extensions. If the breakout holds and buying interestpersists, the TradingView expert predicts that XRP may reach the $3.5 – $4 region over the next three to five months, aligning with past performances following similar wedge breakoutsin the market. $1.40 Breakdown Still In Play If Resistance Fails
While XRP’s current structure supports a bullish outlook, Mercer‘s price chart shows that a failed breakout remains a possibility. If XRP is rejectedagain at the $2.45 resistance level, it could resume its consolidationwithin the Falling Wedge pattern. This would place downward pressure on the price and may lead to a retest of lower support zones. Related Reading XRP Price Enters Perfect Setup After Buy Retest – Next Stop $3.7 9 hours ago
The most critical support level in this bearish scenariois located around $1.4. While this price level has not been tested directly in recent months, it marks the lower boundary of the Falling Wedge pattern. A breakdown below this level could invalidate the XRP’s wedge and bullish setup. It may also indicate a possible shift in market structure from consolidation to bearish continuation, which could result in further downside. XRP trading at $2.24 on the 1D chart | Source: XRPUSDT on Tradingview.com Featured image from Getty Images, chart from Tradingview.com