XRP has been on a strong run over the past 24 days, rallying from $1.90 → $3.10 — a +62% price increase. But after hitting key resistance, is XRP about to correct, or will it break out further? Let’s dive into the technicals.
🧩 Market Structure
Rising Wedge Pattern:
The current market structure resembles a rising wedge, with XRP likely completing wave 5.
Rejection Zone Hit:
Price tapped the nPOC at $3.10 and rejected — providing a clean short opportunity.
📉 Key Support Levels & Confluences
Taking the full 24-day bullish move:
✅ Conclusion: The $2.66–$2.60 zone is a critical support area and offers a solid long opportunity.
Trade Setups
🔴 Short Setup (After Breakdown Confirmation):
🟢 Long Setup:
🧠 Educational Insight: Rising Wedges Explained
A rising wedge is a bearish pattern, often signalling weakening momentum as price climbs within narrowing highs and lows.
Key points:
➡️ Volume typically declines as the wedge matures.
➡️ Breakdown below the lower wedge edge often triggers stronger sell-offs.
➡️ Retests of the broken wedge support turn into ideal short entries.
Pro tip: Combine wedge patterns with fib retracement zones and VWAP levels for higher-confidence setups.
Watch for wedge breakdown confirmation before shorting.
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🧩 Market Structure
Rising Wedge Pattern:
The current market structure resembles a rising wedge, with XRP likely completing wave 5.
Rejection Zone Hit:
Price tapped the nPOC at $3.10 and rejected — providing a clean short opportunity.
📉 Key Support Levels & Confluences
Taking the full 24-day bullish move:
- 0.382 Fib Retracement: $2.6326 — aligns with liquidity pool below the $2.6596 swing low.
- 226-day Trading Range VAH: ~$2.62 (red dashed line) — adds confluence.
- Daily Level: $2.60 — further support.
- Anchored VWAP from $1.90 Low: ~$2.54 (rising over time).
✅ Conclusion: The $2.66–$2.60 zone is a critical support area and offers a solid long opportunity.
Trade Setups
🔴 Short Setup (After Breakdown Confirmation):
- Wait for a sell-off & breakdown of the wedge.
- Ideal entry: retest of the lower wedge edge, ideal short entry would be between 0.618–0.786 fib retracement.
🟢 Long Setup:
- Entry Zone: $2.66–$2.60
- SL: below VWAP line
- Target: Fib 0.618 as TP
🧠 Educational Insight: Rising Wedges Explained
A rising wedge is a bearish pattern, often signalling weakening momentum as price climbs within narrowing highs and lows.
Key points:
➡️ Volume typically declines as the wedge matures.
➡️ Breakdown below the lower wedge edge often triggers stronger sell-offs.
➡️ Retests of the broken wedge support turn into ideal short entries.
Pro tip: Combine wedge patterns with fib retracement zones and VWAP levels for higher-confidence setups.
Watch for wedge breakdown confirmation before shorting.
_________________________________
💬 If you found this helpful, drop a like and comment!
Want breakdowns of other charts? Leave your requests below.
Trade closed manually
🚨 XRP Trade Update💡 Important lesson:
➡️ Wait for confirmation before shorting an uptrend move.
As I mentioned in my analysis, the better short entry on XRP would come after a confirmed breakdown of the rising wedge, not before. I had initially taken a short after the rejection at $3.10 but decided to close it early when there was no follow-through selling and price found support around the $3 mark.
This was a good reminder of two key principles:
✅ Risk management matters.
Monitoring price action and adjusting the trade when conditions change leads to better decision-making.
✅ Reduce risk after partial profits.
After taking TP1, it’s smart to reduce exposure, one common method is moving the stop-loss to entry, locking in a free ride and peace of mind.
🏆 Mastering Fibonacci for precision trading
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⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🏆 Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.