**Ripple’s XRP Shows Signs of Recovery Amid Descending Wedge Formation**
*Technical Analysis by Shayan*
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Ripple’s XRP token is attempting to recover from recent lows after weeks of compression within a descending wedge pattern. The market is currently testing key resistance levels, where a breakout could confirm a short-term structural reversal and signal bullish momentum.
### Daily Chart Analysis
On the daily timeframe, XRP continues to trade inside a large descending wedge formation. This pattern often precedes bullish reversals, especially when accompanied by expanding volume.
After rebounding from the $2.1–$2.2 demand zone, XRP has reclaimed ground near the $2.5 mark. This level aligns with a crucial supply zone (order block) and is close to the 200-day moving average. Meanwhile, the 100-day moving average remains slightly overhead near $2.7.
This convergence creates a critical resistance cluster, combining dynamic resistance from the moving averages, a prior supply block, and the descending wedge’s upper boundary. A daily close above $2.6 would confirm a breakout, potentially shifting market structure in favor of buyers and paving the way toward the $2.8–$3.1 macro supply range.
However, failure to break above this resistance could result in another rejection, keeping XRP inside its mid-term descending pattern. This scenario might trigger a retest of the $2.3–$2.2 support zone.
The Relative Strength Index (RSI) has broken above the midline, signaling recovering momentum. Yet, sustained strength will depend on confirmation from both price action and increased volume as XRP challenges resistance.
### 4-Hour Chart Analysis
The 4-hour chart highlights how efficiently liquidity has been cleared from the lower side of the structure. XRP formed a clear bullish divergence on the RSI during its dip below $2.2, indicating exhaustion of selling pressure.
Following this, the breakout attempt is now targeting the $2.55–$2.6 supply area, coinciding with the last lower high. If XRP successfully flips this zone into support, a retest of $2.8 becomes increasingly plausible.
On the other hand, rejection at the current resistance could establish a short-term seller’s base, potentially driving a pullback toward the $2.3 mid-range level before any further upward continuation.
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### Conclusion
Overall, XRP’s price action resembles a typical breakout-retest setup following prolonged compression. Confirmation, however, hinges on how the token reacts around the pivotal $2.5 level. Traders should watch closely for volume expansion and price confirmation to gauge the next directional move.
https://cryptopotato.com/ripple-price-analysis-is-xrp-preparing-for-another-leg-up-after-a-12-daily-surge/
