Alright, listen up. XRP shot up over 50% in the last five weeks, hitting $2.42 as of today. Sounds great, right?
But this is still a good 30% below its January peak of $3.40. So, is this a comeback or just another bull trap waiting to snap shut?
Volatility
First, picture this, XRP is dancing around a falling wedge pattern on the charts.
Now, if you’re not a chart geek, think of it like a squeeze play, price breaks out, then comes back down to test the top edge of that wedge.
If it holds, buyers jump in, and boom, the price shoots higher. One popular analyst, known as CW, is betting XRP will hold that line and climb toward $3.60.
That’s the math, adding the wedge’s height to the breakout point. Sounds promising, huh?
But, and there’s always a but, if XRP slips below that upper trendline, the whole bullish story could literally unravel, dragging the price down to about $1.75. So, the next few days? The watershed.
Numbers’ game
Now, for the darker twist. XRP’s also flirting with another chart pattern, an inverse cup-and-handle pattern, which, in plain English, is a fancy way of saying it might be gearing up for a nasty drop.
This pattern has been brewing since December 2024, with a neckline support near $1.11.
If XRP breaks below that, we could be looking at a plunge down to around 50 cents, a brutal 80% dip from where it stands now.
I don’t even know if 80% is a dip. The volume’s dropping, and the RSI is sitting neutral, which doesn’t exactly scream “buy”.
And the whales, the big players holding over 10,000 XRP, so when whales are underwater, the price often bounces back to their buy level.
But history tells us that bounce can be short-lived, followed by a broader sell-off that drags the price down to where smaller holders got in, think $1.04 or even $0.67.
So, XRP could flirt with $2.58 in the short term, but if it fails to hold, brace yourself for a deeper slide. Much deeper.
Which way?
On the other hand, if XRP manages to break above $2.58 and hold, that’s a sign the whales are serious, possibly fueled by the hype around spot XRP ETFs launching in the US.
That could be the green light for a sustained rally.
Right now, XRP’s at a crossroads. It’s got the potential to rally hard if it keeps that wedge support, but the bears are lurking with a pattern that could send it to goblin town.
Whales are watching, and so should you.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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