- XRP broke out of a falling wedge pattern on the 4-hour chart.
- The breakout reflects an early sign of a potential reversal.
- Multiple resistances threaten XRP’s potential move to $2.40.
XRP has signaled a potential upside reversal after breaking above resistance on the lower time frame. An analyst observing the cryptocurrency’s price movement identified the breakout on Friday after a 4-hour candle pushed above the downward trendline.
Price Reversal or Fakeout?
According to the analyst, the latest scenario could signal one of two things: the beginning of an upward reversal that would lead XRP to test higher resistance levels, or a fakeout that will attract buyers before the next leg down.
In the meantime, the analyst highlighted a falling wedge pattern on XRP with a strong support around the $1.80 region. Considering the cryptocurrency’s historical pattern, the analyst expected a retest of this base. However, the digital asset’s latest behavior is introducing other ideas, suggesting the downtrend may be over.
Typically, a reversal based on the falling wedge pattern sets prices up for significant rallies, with the expectation of retesting the top of the wedge pattern. In XRP’s current case, that would take the price back up to $2.40, which is the top of the cryptocurrency’s rebound at the beginning of 2026.
Resistance Levels to Consider for XRP
Meanwhile, it is crucial to consider the various resistance levels that could pose obstacles to XRP’s return to $2.40. Considering the cryptocurrency’s recent drop to a local low of $1.85, multiple Fibonacci resistance levels have formed, with the initial obstacle around $1.97.
Breaking above this level will open the way for a move toward the $2.0 psychological level, which coincides with the next Fibonacci resistance. XRP will need to rise above the $2.0 obstacle to boost users’ confidence and gather momentum ahead of a potential move toward the $2.40 target.
In the meantime, the cryptocurrency traded at $1.91, reflecting a rebound of 0.50% at press time. It has a market cap of $116B and a 24-hour trading volume of $1.98B.
Related: Why is XRP’s Price Down Today Despite Strong On-Chain Fundamentals
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Source: https://coinedition.com/xrp-breaks-out-of-a-falling-wedge-signals-potential-upside-reversal/
