Ripple’s XRP has recently attracted a notable surge of buyers, propelling its price beyond a crucial technical threshold defined by a falling wedge pattern. This movement is perceived as a strong bullish indicator in the market. However, analysts suggest that a brief pullback to the recently broken level is a probable scenario.
In examining the daily chart, XRP has benefitted from robust buying activity, bolstered by the support provided by the 100-day moving average and the lower boundary of the wedge located around $2.7. This intersection of support levels has facilitated a fresh price spike, leading to a breakout above the upper boundary of the falling wedge, which indicates a potential bullish shift in market dynamics.
Despite this positive development, there is an expectation for a short-term period of consolidation or a corrective pullback. The price level at $2.9 is identified as a key area for potential retesting. Should this level hold firm, the next significant target levels for Ripple are anticipated to be the $3.4 and $3.6 resistance zones.
Looking at the 4-hour chart, the impulsive breakout from the multi-month wedge pattern is further illustrated, highlighting strong buyer activity. Following this rally, the price has entered the $3 supply zone, where it has encountered initial selling pressure, indicating the presence of sell-side liquidity.
If buyers can successfully maintain momentum above the $3 mark, the path could be cleared for Ripple to reach the $3.4 resistance level. However, if the asset faces rejection in this region, a correctional pullback is likely towards the broken wedge trendline, where buying demand is expected to be tested.
In the broader context, traders are advised to monitor these key price levels closely as they will play a pivotal role in determining the future trajectory of XRP in the market.
