XRPunkie (@Shawnmark7899), a widely followed cryptocurrency analyst on X, has drawn attention to a potentially significant technical development in XRP's price action.
Sharing the weekly chart of XRP, the analyst notes that the asset has been moving sideways for about 160 days following a clearly defined descending wedge pattern — a pattern often associated with trend reversals or breakout moves in technical analysis.
As of the latest weekly candle, XRP is testing the upper boundary of this wedge pattern near $2.55. XRPunkie emphasized this by stating, 'Let’s see if XRP can close the weekly candle outside the descending wedge this week.' Such a close could confirm a bullish breakout and signal the end of the corrective structure labeled ABC on the chart.
Breakout Structure and RSI Confirmation
The chart shows the completion of a three-wave corrective structure, with wave C marking a recent low around $1.60. Since then, XRP has steadily recovered, forming higher lows and testing resistance levels. The descending wedge, marked by sloping trend lines, encompasses this multi-month consolidation process.
Equally noteworthy is the RSI (Relative Strength Index) shown on the chart. The RSI has recently broken out of a downtrend and is moving above the midline — a move often regarded by technical analysts as confirmation of bullish momentum. XRPunkie has highlighted this RSI crossover, adding to their bullish expectations for the asset.
Price Targets and Market Sentiment
The analyst has expressed a clear bullish outlook, stating that 'XRP is screaming BULLISH!' and referencing a potential target range of $8 to $13. Another analyst set a similar target back in April, and XRPunkie's analysis indicates that this asset is currently heading toward that target.
The current move of XRP occurs in the context of a cryptocurrency revival. This rally began on May 8 when Donald Trump announced a new trade deal between the United States and the United Kingdom. The excitement in the global financial markets about more deals has helped the market recover after months of consolidation.
It is important to note that while descending wedges often tend to break upward following a downtrend, confirmation through weekly candle closes is essential. XRP is currently trading at $2.38, just slightly below the $2.55 level it needs to surpass.
Previous attempts to break through this resistance level have failed, leading to further downward trends. A sustained close above the wedge level, especially if accompanied by increased volume, would bolster the case for a longer-term bullish reversal.