XRP Wedge Pattern Signals Major Price Move Ahead

Crypto analyst EGRAG CRYPTO has identified a descending broadening wedge pattern on XRP’s chart, presenting two distinct scenarios with calculated probabilities. According to the analysis, there’s a 57% chance of an upward breakout that could propel XRP toward the $9 region, while a 43% probability suggests a downward move that might retest the $0.50 area based on measured move projections. The current price action finds XRP trading between $2.50 and $2.60, near levels where some traders previously sold around $2.70 to $2.80, creating potential resistance zones.

EGRAG CRYPTO’s commentary reflects the high-stakes nature of the current setup, noting that traders who choose to sell at current levels should be prepared for potential regret if the bullish scenario materializes. The analyst’s straightforward assessment – “If you want to sell now, go ahead, no hard feelings… Just don’t come back to me later saying you wish you had sold” – underscores the binary nature of the current technical setup and the significant implications of the impending breakout decision.

Despite recent volatility, analyst ChartingGuy’s monthly chart analysis reveals that XRP maintains crucial structural support above the $1.61 level, which aligns with both the 0.786 Fibonacci retracement and a former resistance zone from 2021. Although the token recently failed to hold above the $3.31 resistance level, corresponding to the 0.886 Fibonacci level, the chart continues to show a pattern of higher lows, suggesting underlying strength in the longer-term trend.

ChartingGuy’s analysis identifies several potential future price targets based on standard Fibonacci extensions, including $3.31, $8, $13, and $27, which could serve as significant milestones if XRP maintains its current structural integrity. The analyst’s assessment that “XRP is NOT bearish in the slightest” on larger time frames provides context for the current consolidation phase, suggesting that the recent pullback may represent a healthy correction within a broader bullish structure rather than a trend reversal.

The recent price decline coincides with notable whale activity, as large wallets began moving XRP to Binance during the first half of October, following a relatively quiet September. These substantial transfers aligned temporally with a 20% price drop, adding selling pressure during the decline and contributing to the current consolidation phase. The timing suggests that institutional or large-scale traders may have been taking profits or repositioning their holdings.

Concurrently, open interest across XRP futures contracts experienced a dramatic decline from $9 billion to approximately $4.17 billion, reflecting broader market deleveraging and forced selling across multiple major cryptocurrencies. This reduction in leveraged positions indicates a market-wide risk reduction phase, potentially setting the stage for more sustainable price movements once the current consolidation resolves.

Amid the technical uncertainty, Ripple’s recent partnership announcement with Immunefi provides fundamental support for XRP’s ecosystem. The collaboration launches a security testing program for the XRP Ledger featuring a $200,000 bug bounty scheduled to run from October 27 to November 24. This initiative represents a significant commitment to network security and could enhance investor confidence in the platform’s long-term viability.

The timing of this announcement, coinciding with XRP’s slide through key technical levels, offered a short-term sentiment boost and demonstrates Ripple’s continued commitment to developing the XRP ecosystem despite market volatility. As traders await the wedge pattern’s resolution, these fundamental developments provide context for the technical analysis, suggesting that both price action and ecosystem growth are critical factors in XRP’s future trajectory.