XRP has slipped further from the peak of $3.65 in July, causing traders who previously experienced a strong bullish trend to be concerned. As of today, the asset is trading at $2.82, marking a decrease of 5.43% in the past 24 hours.
This decline has pushed XRP below the important psychological support level of $3. However, with increasing volatility, technical indicators are now suggesting that this corrective phase is nearing its end.
According to a recent post on X by market analyst CryptoBull, the current price action of XRP shows signs of potential reversal. He presented a 4-hour chart with a descending wedge pattern, signaling a bullish reversal. This chart is situated between mid-July and early August, with consistently decreasing highs and lows, culminating in a narrow price range.
Recently, the price of XRP has shown support at the lower support level and around the investment price of about $2.8. This trend, along with evaporating volume, indicates that selling pressure is weakening and the possibility of ending the current trend.
Analyst Emphasizes Breakout Potential as Growth Momentum Cools
The technical pattern displayed on the chart suggests that XRP may be preparing for a breakout. A price break above the resistance line of the wedge pattern, located at just below $3, would signal the potential recovery of bullish momentum.
The breakout has yet to be confirmed, but the accumulation on the chart can be seen as a reason for optimism. Trading volume is gradually decreasing, consistent with the market preparing for a directional change. The market is very focused on the support level of 2.7; this is currently a decisive price area.
If XRP can break below that level, further declines are expected. However, if upward pressure builds to the peak and the asset successfully breaks the $3 mark with higher trading volume, it could initiate a strong recovery.
The update from CryptoBull has attracted the attention of the entire community, bringing hope that the current downturn is nearing its end. The current focus is on whether XRP can break free from the descending wedge pattern and begin to reverse the current trend.
Although the strong decline of XRP has raised concerns, the key technical patterns suggest that a recovery may be approaching. A confirmed breakout could mark the beginning of a strong recovery from recent lows.
