XRP continues to act as an interest of traders with its price trapped in a falling wedge formation.

The support area around $2.00 is still standing, which indicates that it could be a key level of breakout.

XRP price is trapped in a falling wedge formation, which could be a subject of interest for traders in the coming days.

The support area around $2.00 is still standing, which indicates that it could be a key level of breakout.

If the bulls can gain more ground, then XRP could retrace back to its former high ground and sail past $3.00.

What Is A Falling Wedge?

In an X post on Wednesday, Rose Premium Signal shared a 2-day chart update. The analysis shows XRP ranging in a congested descending triangle formation, more specifically a falling wedge. This formation normally results in a bullish breakout.

Also Read: Burning Series: A Deep Dive Into the World of Cryptocurrency Tokens

The analysis shows the price action testing the lower trendline of the wedge at times but failing to break below it. This shows that the sellers are stepping in to prevent further decline, which may be an indication that prices will rise in the coming days.

At the same time, the price has remained above this floor until now. This shows that the bulls are not allowing the price to drop to lower levels.

If the sellers can manage to push the price back down below this support area, then it could continue to fall and retest the lows of the wedge.

What Next For XRP Price?

The technical analysis shows that if the bulls can manage to break out of the wedge, then they could continue to rally and test the next resistance level at $2.90.

After that, traders will be looking for the price to continue rallying and reach the Fibonacci level at $3.28, and further, the technical analysis shows that traders will be setting their sights on the final resistance level at $3.76.

However, technical analysis predicts that the bulls will need to clear the wedge resistance line and close a candle above it to confirm the breakout.

Without that, the price could pull back and test the $2.00 support level again.

This would also limit any bullish run and traders might not be able to reach the Fibonacci levels.

Optimism In The XRP Community

Overall, the sentiment in the XRP community is still generally positive, yet guarded.

Past wedge breakouts in Ripple’s price chart have mainly resulted in large movements. These patterns are used for defining the place where a trader should enter into the market and where to exit from it. The pattern is also attractive to short-term momentum traders.

However, Dark Defender, an analyst at The DeFi Nerds community, pointed out that the expected displacements that occurred between the 9th and 16th of April. The predictions were a start from $1.90 to $2.222. XRP closely followed this move and over time developed trust in the model.

"We were expecting $2.222 from $1.90 levels. We were ready with the bounce at $2.222. We were ready with the 5th wave towards $2.04 first. You can find the comparison between 9 and 16 April. Join me on Patreon, it will be the best," said Dark Defender.

The post XRP Bulls Might Retest Former High Ground Above $3.00 If… appeared first on Crypto Advanced.