Thomas Daniels
Critical Support Zone at $2.80–$2.95 Identified as Pivotal for Market Direction
XRP is showing early signs of a bullish reversal, with technical indicators aligning to suggest the potential for a 20% price rally by the end of August. Central to this outlook is the $2.80–$2.95 support zone, which market analysts have labeled a critical “make-or-break” level.
Key Technical Indicators Underpinning the Bullish Case
Bullish Divergence on 4-Hour Chart
XRP’s recent price action reflects a bullish divergence pattern—a situation where price registers lower lows while the Relative Strength Index (RSI) forms higher lows. This decoupling between price and momentum suggests that downward pressure may be weakening, hinting at a possible trend reversal.
Dragonfly Doji on Daily Chart
On the daily timeframe, XRP has printed a Dragonfly Doji—a candlestick with a long lower wick and minimal upper shadow. Historically regarded as a bullish signal, this pattern indicates strong buyer engagement following initial selling. A similar setup earlier this year preceded a significant upward movement of approximately 65%.
Falling Wedge Formation
XRP also appears to be breaking out of a classic falling wedge pattern on its four-hour chart. This formation, widely considered a bullish reversal signal, is further reinforced by price bouncing near the 200-period exponential moving average. A decisive breakout above the upper trendline—currently aligned with the 0.236 Fibonacci retracement level near $3.07—could propel the token toward the $3.60–$3.65 range.
Analyst Perspective and Market Scenarios
Technical analysts maintain that XRP’s price must hold above the $2.80–$2.95 zone to sustain bullish momentum. A break below this level may undermine the recovery narrative and invite renewed bearish sentiment.
Conversely, a sustained push above $3.07 could validate the bullish setup and open a pathway toward short-term gains of up to 20%, bringing the asset into the $3.60–$3.65 corridor. This scenario remains contingent on continued institutional interest and a favorable macroeconomic backdrop.
Conclusion
With multiple technical indicators pointing to a potential reversal and the $2.80–$2.95 level emerging as a decisive support zone, XRP finds itself at a critical inflection point. A successful breakout from current consolidation levels could reinvigorate bullish sentiment and deliver notable upside in the weeks ahead. However, failure to defend key support could expose the asset to further downside risks.
