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- XRP has formed a bearish rising wedge on the daily chart.
- Failure to break $1.95 increases downside risk toward $1.50.
- A breakout above resistance would invalidate the bearish setup.
XRP is back in the spotlight as technical signals point to a potential downside move after another failed attempt to break key resistance. Despite its position as one of the largest cryptocurrencies by market capitalization, recent price action suggests growing selling pressure that traders can no longer ignore.
Crypto analyst Steph Is Crypto warned this week that XRP’s daily chart has formed a bearish rising wedge — a pattern often associated with trend reversals. The warning came shortly after a previously bullish outlook, underscoring how quickly sentiment can flip in volatile crypto markets.
Bearish Rising Wedge Raises Red Flags
A rising wedge typically forms when prices make higher highs and higher lows within a narrowing range, signaling weakening momentum. In XRP’s case, repeated rejections near the $1.93–$1.95 resistance zone suggest buyers are losing control.
The upper boundary of the wedge has acted as a consistent supply zone, where sellers step in aggressively. Combined with bearish alignment across key exponential moving averages, the structure points to an increased risk of a downside move if support fails.
Also Read: On-Chain Data Fuels XRP Sale Rumors — Here’s What We Know
Key Support Levels to Watch
If XRP breaks below the lower trendline of the wedge, analysts expect an initial test of the $1.70–$1.80 region. A deeper pullback could follow, with $1.50 emerging as a major downside target — a level that has historically acted as a reference point during corrective phases.
A clean breakdown could also trigger stop-loss cascades, accelerating losses in a relatively thin market. For traders, these zones represent critical decision points for managing risk.
Mixed Signals Keep Traders Divided
Not all indicators paint a strictly bearish picture. Some momentum tools, such as the Relative Strength Index (RSI), are showing higher lows even as price struggles, hinting that selling pressure may be gradually weakening.
XRP’s tight consolidation range also suggests the market is nearing an inflection point. This leaves room for sharp volatility in either direction, keeping both bulls and bears cautious.
What This Means for XRP Traders
Steph’s warning highlights the importance of discipline. A confirmed breakdown below support could open the door to accelerated losses, while a decisive move above $1.95 would invalidate the bearish setup and potentially reignite bullish momentum.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
