In a promising development for XRP investors, the XRP/BTC trading pair has shown renewed strength, gaining over 7% in the last 24 hours.
While this short-term price spike is noteworthy, it’s the chart structure behind the scenes that may signal a larger shift in momentum.
According to TradingView data, a falling wedge pattern is forming on the daily XRP/BTC chart, a technical setup often associated with an impending bullish reversal.
A falling wedge is a bullish chart pattern that forms as an asset’s price trends downward with declining momentum. It is characterized by converging lower highs and lower lows, forming a cone-like shape.
Though the price action appears bearish on the surface, the narrowing of the range suggests that selling pressure is weakening.
This pattern often precedes a strong breakout to the upside once resistance is broken. On the XRP/BTC chart, the pair has been losing ground to Bitcoin over the past two years.
However, over the last several months, the trading range has tightened, and volume has declined, both classic precursors to a potential wedge breakout.
XRP/BTC recovery begins?
On May 11, XRP/BTC bounced sharply from the lower boundary of the wedge, rising nearly 9% to trade around 0.00002472 BTC. While this bounce does not confirm a full breakout, it does signal early bullish activity.
Other indicators are also turning positive. The Relative Strength Index (RSI) has climbed to 58, a neutral zone indicating growing bullish momentum. The Moving Average Convergence Divergence (MACD) has shown a slight bullish crossover, further supporting the case for increased buyer interest.
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A confirmed breakout would require a decisive move above the wedge’s upper trendline, ideally accompanied by a surge in volume. If this happens, XRP could rally significantly against Bitcoin and potentially head toward the $3 mark, as previously reported by U.Today.
While it’s still early, the technical indicators suggest that the XRP/BTC pair is approaching a critical inflection point. If bulls can push the price above the upper boundary of the wedge, the long-awaited breakout may finally materialize, setting XRP up for a sustained recovery against Bitcoin's dominance.
