XRP has mirrored the recent struggles of many cryptocurrencies, facing multiple corrections in the past week. However, a glimmer of hope emerges in the form of a bullish technical pattern that could trigger a significant price surge.
While XRP’s daily and weekly charts paint a picture of decline, with its price dropping nearly 2% over the last seven days, a tweet by popular crypto analyst ZAYK Charts highlights a potential turning point. A falling wedge pattern, generally considered bullish, has been taking shape on XRP’s chart since March. This pattern often precedes a breakout, and ZAYK Charts predicts a potential 30–40% rally for XRP in the coming days or weeks if such a breakout occurs.
But will the breakout materialize? On-chain data provides some encouraging signs. Investor confidence in XRP seems to be holding strong, as evidenced by Santiment’s data. Both the token’s mean coin age metrics, indicating dormancy on the blockchain, have spiked recently. This suggests a significant number of investors are holding onto their XRP, a sign of potential buying pressure.
Further analysis by AMBCrypto delves into the relationship between XRP’s price and Hyblock Capital’s cumulative liquidation delta metric. This metric seems to offer clues about future price movements. Historically, when the delta turns green, XRP’s price action slows down or dips. Conversely, a red delta has often preceded price increases. At the time of writing, the delta sits at a negative value, potentially hinting at an imminent price uptick.
However, some metrics paint a contrasting picture. Coinglass’s data suggests a rising bearish sentiment, with the token’s long/short ratio dropping. Additionally, the Fear and Greed Index for XRP is currently in “greed” territory, which can foreshadow a price correction.
Despite these bearish whispers, other technical indicators offer reasons for optimism. The Relative Strength Index (RSI) has shown an uptick, while the MACD hints at a potential bullish crossover. These indicators, coupled with the falling wedge pattern, bolster the possibility of a successful breakout.
While XRP’s future trajectory remains uncertain, the presence of a bullish pattern and supportive on-chain data suggest a potential price increase in the near future. However, investors should remain cautious and consider all available information before making any investment decisions.
