Ripple’s native cross-border token is showing signs that it may be preparing for a change in direction. After dropping to around $1.84, the price bounced and is now trading near $1.95. Analysts are watching as some early signals point toward possible buying momentum building in the background.
Falling Wedge and RSI Divergence
On the 1-hour chart, XRP is moving within a falling wedge pattern. This setup can often appear near the end of a downtrend. The asset touched the lower edge of the pattern before bouncing, supported by a rise in volume.
At the same time, the Relative Strength Index (RSI) is rising, even though the price has stayed in a downward channel. This rising RSI is what analysts call a “bullish divergence,” meaning that momentum is picking up even though the chart still shows a decline.
A crypto analyst, CW, explained the current setup:
A break above the wedge’s top line, around $2–$2.05, would be the first sign of a possible trend reversal.
Support and Resistance Levels
According to chart analyst Ali Martinez, there are three key price levels to watch. Support is found at $1.78, while resistance is seen at $1.97 and $2. Until the asset breaks above these resistance levels, the downtrend remains active.
Volume across major exchanges has risen by over 22%, reaching $6.54 billion. Open interest in XRP futures also increased by nearly 1% to $3.40 billion, while options volume climbed by more than 15% to $4.32 million (per CoinGlass’s data). Over the last 24 hours, the price has risen 2%, but it is still down 7% over the past week.
Zooming out, some analysts remain focused on the broader picture. Just 3 days ago, Crypto Patel pointed out that XRP is trading above what he calls a long-term breakout zone. They noted:
Patel mentioned a price expansion from $0.60 and shared targets ranging from $3.50 to over $10. They also stated that if XRP closes below $1.30 on the higher time frame, this longer-term setup could be invalidated.
Additionally, over the past 12 months, XRP reserves on Binance have dropped by nearly 45%, falling from $10.16 billion to $5.55 billion, as CryptoPotato reported yesterday. This shift shows more XRP moving into private wallets, which may suggest longer-term holding by users.
The post Ripple (XRP) Reversal Alert: Why $2 Is the Critical Level Now appeared first on CryptoPotato.
Source: https://cryptopotato.com/ripple-xrp-reversal-alert-why-2-is-the-critical-level-now/
