Analysts highlight significant risks in holding loss-making XRP positions, though a bullish rebound could emerge if key support levels hold.
As of the latest data, XRP shows an overall upward trend with intermittent short-term pullbacks. The asset has fluctuated between $2.08 and $2.30 in recent weeks, currently trading at $2.28—a 3.98% 24-hour increase and 4.22% weekly gain.
XRP Forms Bullish Reversal Pattern
According to TradingView analyst Mad Whale, XRP may be poised for further growth, supported by critical technical levels on the 12-hour chart.
The analyst observed a bullish reversal pattern within a descending wedge—a structure marked by converging downward-sloping trendlines that restrict price action until a breakout occurs.
Key Observations:
- The wedge's lower support has been tested multiple times, notably on May 6 when XRP dipped to $2.08 before rebounding sharply.
- Resistance levels remained firm, such as the $2.33 peak on June 16.
Breakout Attempts and Potential Pullback to $2.00
XRP recently breached the wedge pattern, briefly touching $2.32, signaling a potential bullish breakout. However, analysts caution that XRP remains near the critical daily support at $2.00—a psychological and historical demand zone.
👉 Why $2.00 is a make-or-break level for XRP
A drop to this support would require a 12.28% decline from current levels. If XRP rebounds here, Mad Whale projects an 11.84% surge toward $2.55.
Analysts Urge Traders to Avoid Emotional Decisions
The report emphasizes reevaluating positions: holding loss-making trades without technical justification often reflects emotional bias rather than strategy.
Common Pitfalls to Avoid:
- Ignoring RSI divergences or weakening momentum.
- Overlooking institutional exit signals (e.g., a hyped altcoin recently crashed 48% in 5 days due to ignored red flags).
Recommended TradingView Tools:
- Volume Profile: Identifies high-interest price zones.
- RSI Divergence: Flags trend reversals.
- Smart Money Concepts: Tracks institutional activity.
- Session Volume Indicators: Measures market confidence.
👉 Master these tools to optimize exit timing
Key Takeaway: Holding positions should stem from structural analysis—not hope or denial.
FAQ Section
Q: Is XRP a good buy at current levels?
A: While short-term bullish signals exist, the $2.00 support test is crucial. Wait for confirmation of a rebound before entering.
Q: What’s the long-term outlook for XRP?
A: Mid-term targets like $2.55 are feasible if key supports hold, but macroeconomic and regulatory factors could alter trajectories.
Q: How can traders mitigate emotional decisions?
A: Use objective tools (e.g., RSI, volume analysis) and predefined exit strategies to override impulsive judgments.