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 support 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 support 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 support 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 Support
Limiting bearish risks, a recent X post by Ali Martinez, an independent analyst, highlights growing whale support. 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 support rising, XRP’s outlook improves, boosting confidence for a potential breakout rally.