XRP is forming a bullish falling wedge pattern similar to the one from earlier this year that led to a 70% price rally.
By Bhushan Akolkar
Editor Hamza Tariq
Updated
2 mins read
Ripple’s native crypto XRP XRP $2.98 24h volatility: 1.9% Market cap: $176.48 B Vol. 24h: $4.90 B has been leading the broader crypto market rally recently, with bulls staging a comeback over $3.0 on Monday.
The technical chart shows that it is forming a bullish fractal pattern, similar to that seen earlier this year, which could trigger a strong 70% XRP price rally ahead.
The current XRP falling wedge pattern shows a close resemblance to that seen between December and January.
On the other hand, the Ripple cryptocurrency continues to maintain support above its 50-day exponential moving average (EMA), thereby highlighting its underlying strength.
XRP price falling wedge pattern | Source: TradingView
After the XRP price breakout in January, it quickly reclaimed its 20-day EMA as support, thereby triggering a strong 70% rally. As a result, XRP went from $2 to $3.39 in a few weeks.
As seen in the above image, the Ripple cryptocurrency is once again seeing consolidation in a falling wedge pattern, as it bounces back from the 50-day EMA, while converting 20-day EMA back into support.
As of Tuesday, August 5, XRP price is testing the upper trendline of its multi-month wedge pattern. This hints at a potential breakout toward $3.75, with these 20% gains coming this month in August. Analyst Javon Marks noted that as far as the Ripple crypto holds $2.47 support, the bullish momentum remains intact.
XRP price breakout | Source: TradingView
However, a failure to break above the resistance could delay further gains, with XRP likely to retest its 50-day exponential moving average (EMA) as immediate support.
A decisive close below this level could open the door for a deeper pullback toward the wedge apex near the 200-day EMA around $2.34.
Despite the near-term uncertainty, some analysts expect the XRP price to break above $4 this cycle. Analysts are bullish about XRP whale accumulation and a potential Fed rate cut coming in September.
On the other hand, top market analysts believe that the odds of an XRP ETF approval during the September-October months have increased once again.
Ripple’s XRP Ledger has seen a steep growth with 70 million transactions recorded in July. This shows that the blockchain network remains resilient with strong market demand. It could serve as a positive catalyst for the XRP price rally ahead.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.