Crypto market analyst ChartNerd has issued a fresh technical outlook for XRP, arguing that a relief rally could be coming soon. The analysis points to a successful falling wedge breakout, a confirmed retest of the breakout level, and the monthly Relative Strength Index (RSI) nearing a cycle low at 48 — a pattern that in the past has marked bottoms before significant upswings.
Falling Wedge Breakout Confirmed by Support Retest
ChartNerd notes that XRP broke out of its falling wedge pattern and subsequently retested the breakout line, which now holds as support near the $1.6055 area. This retest validates the breakout, suggesting sellers have been absorbed. The liquidity sweep observed around this level indicates strong buying activity, reinforcing expectations that the market is ready to move higher.
Monthly RSI at 48: Historical Buying Opportunity
Another factor fueling bullish sentiment is XRP's monthly RSI reading. Currently at 48, the indicator is approaching a key cycle low. ChartNerd stated on X: "Anytime XRP’s RSI has been below 50 in previous cycles, it has provided substantial buying opportunities." The accompanying chart highlights how similar RSI levels in prior cycles — such as March 2020 and August 2024 — preceded major rallies.
Technical Confluence Builds Case for Reversal
The combination of a confirmed falling wedge breakout and a monthly RSI cycle low creates technical confluence, historically a strong setup for trend reversals. Traders are watching whether XRP can hold above $1.60 and break through immediate resistance with volume. A failure to maintain support would invalidate the bullish scenario. As of press time, XRP trades around $1.60 with a 24-hour decline of about 2%. The next few trading sessions will test whether the relief rally materializes.