With Bitcoin preparing for a bullish comeback, Ripple (XRP) follows a similar path. The altcoin has recovered 3.34% intraday, attempting to reverse the 22% drop over the past 7 days.
Currently, Ripple sustains dominance above the $2.40 mark, with bullish traders anticipating a reversal rally from a critical trendline. Will this reversal push the altcoin closer to the $4 milestone? Let’s find out.
XRP Price Trend: Broadening Wedge Pattern in Play
In the daily price chart, XRP price action reveals two diverging and resistance trendlines. These trendlines form a broadening wedge pattern, which is generally considered a bearish structure.
Within this pattern, the altcoin has completed a bearish cycle, leading to a 30% drop over the past three weeks. Currently, XRP stands at the critical trendline, with bulls making a strong comeback.
With an intraday recovery of 3.74%, the altcoin is rising toward $2.40, marking a potential recovery before testing the 100-day EMA line. Furthermore, the recovery rally resembles a morning star pattern, indicating a possible bullish reversal.
If the altcoin manages to overcome the 2.26% drop from last night, the bulls could regain trend control.
Key Resistance Levels: Can XRP Reach $4?
With bulls regaining strength, the altcoin is likely to test immediate overhead resistance at the 23.6% Fibonacci level. At this $2.50 resistance level, the 50-day EMA coincides, creating strong supply pressure.
Beyond this, a breakout could drive the altcoin smoothly to the 50% Fibonacci level at $3.17. Optimistically, a full bullish reversal within the pattern could challenge the 78.6% level at $3.80, increasing XRP’s chances of reaching the $4 milestone.
Despite the bullish momentum, a bearish takeover is still possible. The MACD and signal lines maintain a bearish alignment, with histograms showing strong bearish intensity.
A closing below the trendline could push the altcoin to the $2.00 psychological mark. If the altcoin fails to hold this level, the 200-day EMA at $1.60 will act as the final defense line.
Whale Accumulation: Strong Community
Limiting bearish risks, a recent X post by Ali Martinez, an independent analyst, highlights growing whale . From sentiment data, Ali reports that the whale community purchased 520 million XRP tokens during the recent market crash.
This strong accumulation from whales increases the chances of a bullish comeback. With whale rising, XRP’s outlook improves, boosting confidence for a potential breakout rally.
