XRP continues to show intriguing chart patterns and is influenced by macroeconomic factors, creating conditions for potential growth.
Chart Patterns and Support Levels
In his latest assessment, STEPH IS CRYPTO highlights the formation of an important chart pattern on XRP's daily chart. The cryptocurrency has been consolidating inside a falling wedge for 47 days. This technical pattern historically precedes strong bullish reversals. XRP successfully flipped a key resistance zone into support, strengthening its position. The critical level to hold is $2.77, corresponding to the 50% Fibonacci retracement from the June 22 low. If buyers defend this floor, XRP could surge toward $4.63, a 61% gain from its current range.
Macroeconomic Factors and ETFs
Macroeconomic conditions also appear favorable for XRP. Recent U.S. labor data indicated weaker job openings and rising unemployment claims, signaling a cooling market. This increases pressure on the Federal Reserve to cut interest rates at its September 16-17 meeting. If the Fed pivots, it could lead to a weaker dollar and increased liquidity flow into risk assets, including cryptocurrency. Additionally, the rising probability of a spot ETF for XRP is noted, with analysts estimating a roughly 87% chance of approval by the end of 2025.
Historical Parallels and Risks
Despite positive technical and fundamental signs, STEPH warns of potential risks. On the weekly timeframe, XRP's relative strength index (RSI) is indicating bearish divergence, which may suggest looming heavy resistance in the $4-$5 range. Historically, such zones have triggered multi-week corrections in XRP, making risk management crucial. Traders are advised to scale out profits on the way up rather than waiting for potential exhaustion at peak levels.
The current situation with XRP is approaching a critically important point. The formation of a falling wedge on the daily chart, macroeconomic factors pointing toward easier monetary policy, and strong ETF optimism highlight the bullish scenario. However, the $4-$5 resistance zone remains a decisive battleground, and disciplined trading will be essential for investors to capitalize on what could be the next major breakout.
