XRP Holds Critical Support as Bullish Wedge Pattern Sets Up for Next Move

Published: Sun, Dec 07, 2025 | 12:55 PM GMT

XRP has faced considerable headwinds recently, with the altcoin sector showing mixed signals. After peaking near $3.66 in the summer months, the token has retreated approximately 28% over the past two months, bringing it back to historically significant support zones. However, this pullback may tell a different story than the headlines suggest — the technical structure points toward accumulation rather than capitulation.

The Pattern That Matters: Bullish Wedge Formation Taking Shape

Looking at the weekly timeframe, XRP is forming within a right-angled ascending broadening pattern — a structure typically characterized by widening volatility, repeated tests of support and resistance, and eventual strong directional breaks. The rejection from resistance around $3.66 generated a sharp 43% decline, yet the crucial detail is that price stabilized within historically robust demand territory.

This corrective move has accomplished something important: it has eliminated the excessive momentum that existed at the highs and repositioned XRP within its broader consolidation band. Rather than signaling a trend reversal to the downside, the price action suggests accumulation is underway — and that’s where a bullish wedge pattern typically precedes the most explosive moves.

The Zone Where Buyers Have Shown Up

The $1.90–$2.10 support corridor remains the most critical battleground. Throughout this pattern’s development, every dip into this range has attracted aggressive buying interest. This isn’t passive support; it’s active defense. The repetitive buying pressure at these levels indicates that meaningful players — whether institutions or sophisticated retail — recognize the value here and are likely positioning accordingly.

At the current price of $2.08, XRP sits within this accumulation shelf, which reinforces the constructive bias despite short-term choppiness.

What Traders Should Watch

The path forward depends on a few key levels:

Bullish Scenario: If XRP maintains support above the wedge base and reclaims the 200-week moving average region near $2.56, the technical setup shifts decisively constructive. Breaking above the upper wedge resistance could open the door to:

• Ascending resistance trendline around $4.10
• Potential challenge of previous highs and new all-time territory

A confirmed breakout would likely signal the beginning of the next extended uptrend for XRP.

Risk Factor: The downside shouldn’t be ignored. A decisive break below $1.90 would compromise the current bullish wedge structure and suggest deeper retracement levels could be tested, potentially extending into early 2026.

The Bigger Picture

XRP remains in a state of equilibrium — not broken, but not yet confirmed bullish. The accumulation zone between $1.90–$2.10 represents the decision point. Historical buying pressure at these levels, combined with the constructive bullish wedge pattern, suggests that large participants may be building positions quietly. Until that structural support breaks decisively, the narrative stays neutral-to-positive, with the next directional catalyst still forming beneath the surface.