XRP Chart Patterns Suggest Possible Trend Reversal

XRP currently changes hands around the $1 psychological level, with two well-known bullish chart patterns pointing to a possible trend reversal.

Now trading for $1.08, the token has spent the past several weeks moving within a narrowing price range, which has allowed a falling wedge and an inverse head and shoulders pattern to form on the daily chart.

The current situation suggests that XRP could soon reach a turning point. As the price continues to tighten between key support and resistance levels, a larger move could ensue once it breaks out of the current range.

One of the main patterns on XRP’s chart is the falling wedge, which appears near the end of a downward trend. Notably, this pattern forms when price moves between two downward-sloping trendlines, with the lower trendline falling faster than the upper one.

As the space between the two lines becomes smaller, sellers begin to lose strength while buyers continue stepping in.

XRP has been trading in a tight range between $1.08 and $1.10, staying within these converging trendlines after a long period of decline. The narrowing price action suggests that the current consolidation phase may soon come to an end.

Alongside the falling wedge, XRP has also developed an inverse head and shoulders pattern, another formation that precedes a reversal.

The pattern consists of three consecutive lows, with the middle low dropping below the other two to form the head, while the two outer lows create the shoulders. In this pattern, a move above the neckline confirms the pattern.

XRP has built this structure over the past six weeks. The left shoulder formed at $1.05 on June 6, creating the first major low.

The price later dropped to $1.008 on June 26, forming the head and marking the lowest point of the recent correction. Meanwhile, the right shoulder appeared at $1.0531 on July 13, almost matching the left shoulder.

Importantly, the neckline sits around $1.18, which also acted as resistance during XRP’s recovery attempt earlier this month. A solid move above this level would complete the pattern and confirm the case for a broader recovery.

As long as XRP remains above the $1.05 to $1.07 support range, the right shoulder stays intact and both bullish patterns remain valid. However, if the price falls below $1.05, the inverse head and shoulders pattern would lose its validity.

On the upside, the $1.15 to $1.18 area remains the most important level to watch. A daily close above this range would confirm both the falling wedge breakout and the neckline break from the inverse head and shoulders.

Even after a breakout, XRP still needs to overcome another resistance zone between $1.18 and $1.20, which stopped the previous rally. Buyers must clear this level before a larger upward move can develop.

If XRP breaks above the neckline, the inverse head and shoulders pattern points to an initial target between $1.25 and $1.35. This target comes from measuring the distance between the head at $1.008 and the neckline at $1.18, then adding that distance above the breakout point.

A complete breakout from the falling wedge gives a wider target between $1.45 and $1.55, but reaching that range would depend on continued buying pressure and supportive conditions from the broader cryptocurrency market.