XRP Drops 40% From High, Futures Launch May Spark 70% Rally

XRP, the cryptocurrency, has experienced a significant decline, dropping nearly 40% from its multi-year high of $3.40 reached three months ago. Despite this drop, analysts remain optimistic about its future performance, citing its ability to maintain key technical support levels and the anticipated launch of XRP futures contracts on the Coinbase Derivatives platform. This launch, scheduled for April 21 under the oversight of the US Commodity Futures Trading Commission, is expected to bring fresh liquidity and institutional interest to the market, potentially catalyzing technical breakouts.

From a technical analysis perspective, XRP's current consolidation phase resembles a classic Wyckoff reaccumulation pattern. This pattern, identified by technical analyst Charting Guy, suggests that smart money is absorbing supply during the cooldown, setting the stage for a potential breakout. XRP established support and began consolidating in late 2024, marking Phases A and B of the Wyckoff reaccumulation pattern. In early April 2025, the price formed a “Spring” followed by a successful “Test,” signaling seller exhaustion. As of April 21, XRP is attempting to break above the descending “Creek” trendline. A breakout would confirm a “Jump Across The Creek” (JATC) and entry into Phase D. If confirmed, XRP could enter Phase E and rally 70% toward $3.55 in the coming weeks, a level aligning with the pattern’s Last Point of Support (LPS).

A Fibonacci retracement graph drawn from $3.55-swing-high to $0.14-swing-low presents $5.65 as the upside target for June if XRP price breaks above $3.55. This bullish outlook aligns with XRP’s prevailing falling wedge pattern, as spotted by chartist “Jobcfx.” The bullish reversal structure has been narrowing since February 2025. A breakout above the wedge’s upper trendline, currently around the $2.20-2.40 area, would signal the start of a new rally. Falling wedge breakouts typically target a move equal to the pattern’s maximum height. In XRP’s case, if it breaks above $2.20, the projected upside target for May lands near $4.00, aligning with the Wyckoff reaccumulation’s Phase E breakout zone.

Interestingly, Bitcoin (BTC) is also forming a falling wedge pattern on its chart. If confirmed, a bullish breakout in Bitcoin could act as a catalyst for the altcoin market, potentially accelerating XRP’s upward momentum as well. This development, combined with the anticipated launch of XRP futures contracts on Coinbase, could inject fresh liquidity and institutional interest into the market, helping to catalyze the technical breakouts projected above. However, it is important to note that every investment and trading move involves risk, and readers should conduct their own research when making a decision.