Usman Salis
XRP finds itself at a crucial turning point after months of price decline. Trading around $2.52, the token is testing a major support zone that's historically marked cycle bottoms. While technical indicators suggest a potential explosive move upward, traders remain cautious about the possibility of a deeper correction if this setup fails.
Technical Setup Signals Potential Reversal
The weekly chart reveals XRP consolidating within a descending wedge—a pattern that often precedes bullish reversals when paired with momentum shifts. Price has returned to the $2.35–$2.50 zone where two key trendlines meet, creating a strong support foundation. The RSI indicator shows a hidden bullish divergence, with the RSI forming higher lows while price makes lower lows, suggesting selling pressure is weakening.
Trader JD, who previously nailed XRP's $0.28 bottom and $3.37 top, believes this divergence could trigger a significant rebound toward the $3.00–$3.40 range. If XRP breaks above its previous peak at $3.37, it could confirm a new bullish cycle. However, he warns that failure to hold current support might lead to a catastrophic 90% drop.
Market Backdrop: Strong Fundamentals Meet Cautious Sentiment
XRP's recent weakness reflects broader market profit-taking rather than deteriorating fundamentals. Ripple continues expanding its enterprise partnerships, while on-chain data shows long-term holders accumulating around $2.50. The improving RSI pattern suggests bears may be losing control, aligning with gradually improving crypto market sentiment.
Still, risks persist. XRP's performance remains tied to Bitcoin's direction, and further BTC weakness could drag the token back toward lower support levels. Short-term volatility will likely remain elevated as the market decides which direction to take.
If bulls take control, XRP could surge toward $3.00–$3.40, testing resistance from its 2021 peak. Breaking above $3.37 would confirm the reversal and potentially kickstart a fresh uptrend. If support fails, a drop below $2.35 would invalidate the bullish setup and could trigger a sharp decline, potentially retracing most of the recent gains. The coming weeks will determine whether XRP's current consolidation leads to a breakout or breakdown.
Usman Salis
