XRP News Today: XRP's Bullish Breakout Potential as Price Tests $2.55 Resistance

XRPunkie, a prominent crypto analyst, has highlighted a significant technical development in XRP’s price action. The analyst shared a weekly chart of XRP, noting that the asset has been moving sideways for approximately 160 days within a well-defined falling wedge pattern. This pattern is 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 the $2.55 level. XRPunkie emphasized the importance of a weekly candle close outside the falling wedge, stating, “Let’s see if XRP can get a weekly candle close outside the falling wedge this week.” Such a close could confirm a bullish breakout and signal the end of the corrective structure labeled as A-B-C on the chart.

The chart indicates the completion of a three-wave corrective structure, with wave C marking the recent low around the $1.60 level. From there, XRP has rebounded steadily, forming higher lows and testing resistance. The falling wedge, marked by descending trendlines, encapsulates this multi-month consolidation. The RSI (Relative Strength Index) shown on the chart has recently broken out of its downtrend and is crossing above the midline—a move often viewed by technical analysts as confirmation of bullish momentum. XRPunkie drew attention to this RSI crossover, adding to his bullish expectations for the asset.

The analyst expressed a clear bullish outlook, stating that “XRP is screaming BULLISH!” and referenced a potential target range between $8 and $13. Another analyst set the same target in April, and XRPunkie’s analysis suggests that the asset is now building toward it. XRP’s current move comes amid a crypto resurgence. This rise began on May 8 when Donald Trump announced a new trade deal between the U.S. and the U.K. The excitement in global financial markets for more deals has helped the market recover from months of consolidation.

It is important to note that while falling wedges are typically bullish when occurring after a downtrend, confirmation via weekly candle closure is essential. XRP is currently trading at $2.38, just below the $2.55 level it needs to surpass. Previous attempts to break above this resistance have failed, leading to further downside. A sustained close above the wedge, particularly if accompanied by increasing volume, would strengthen the case for a longer-term bullish reversal.

According to the analyst's forecast, XRP has significant upside potential, which could attract more investors to the cryptocurrency market. The analyst's bullish stance on XRP comes at a time when the cryptocurrency has been experiencing positive investor sentiment. However, it is important to note that the analyst's price target range for XRP is based on forecasts and market conditions, and actual price movements may vary. Investors should conduct their own research and consider all relevant factors before making any investment decisions. The analyst's bullish outlook on XRP is a positive sign for the cryptocurrency market, but it is essential to remain cautious and informed about the risks involved in investing in digital assets.