XRP Breaks Rising Wedge Pattern, Signals Bearish Shift After $1.60 Dip

XRP Breaks Down From Rising Wedge, Could Fall to $1.60 As Technical Outlook Turns Bearish

  • XRP has broken down from a rising wedge pattern, signaling a potential shift to a bearish trend.
  • Technical analysis suggests XRP could fall back to its April 7 lows near $1.60.
  • Bulls need to push XRP above $2.18 to invalidate the current bearish outlook.

XRP’s price chart has flashed a bearish signal with a breakdown from a rising wedge pattern during Wednesday’s early Asian trading hours. This technical development suggests that the recent recovery momentum from April 7 lows has weakened, potentially allowing sellers to regain control of the payments-focused cryptocurrency’s price action.

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The rising wedge breakdown occurred as XRP moved below the lower trendline of the pattern, which had been forming over recent trading sessions. According to technical analysis theory, this pattern consists of two converging trendlines connecting higher lows and higher highs, with the convergence indicating weakening upward momentum.

Technical Implications of the Breakdown

Following standard technical analysis theory, traders typically look to the starting point of the rising wedge formation to identify the initial support level after a breakdown. This approach suggests that XRP could now fall back to around $1.60, the level from which the pattern originally formed on April 7.

The bearish outlook gains additional support from XRP’s movement below the Ichimoku Cloud on the hourly chart. This momentum indicator further reinforces the negative sentiment indicated by the rising wedge breakdown, suggesting that bears might have gained the upper hand in the near term.

What Would Turn the Tide?

Despite the current bearish signals on XRP’s chart, the cryptocurrency still has a path to recovery. For bulls to invalidate the negative outlook, they would need to push the price back above Tuesday’s high of $2.18. Should XRP reclaim this level, it could signal renewed buying interest and potentially negate the current technical breakdown.

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The price action comes amid broader volatility in the cryptocurrency markets, with XRP’s technical picture providing traders with clear levels to watch in the coming sessions as the digital asset navigates this period of uncertainty.

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