XRP's Accumulation Setup: Is a Bullish Reversal Starting from These Support Levels?

The altcoin sector is experiencing broad-based consolidation, and XRP mirrors this cautious market sentiment. After hitting an ATH of $3.65 in July, the asset has retreated significantly into a compressed price band—now trading at $1.87. While this pullback appears sharp on shorter timeframes, the weekly structure tells a more nuanced story.

The Technical Setup: More Than Just a Correction

Zooming out to the weekly chart reveals an interesting pattern: XRP is forming within a right-angled ascending broadening wedge—a configuration that historically precedes directional clarity and heightened volatility. The sharp 43% decline from recent highs wasn’t a sign of structural weakness, but rather price testing and reclaiming historically defended support zones.

The critical observation lies in what happened at the $1.90–$2.10 band. Every bounce from this shelf has attracted consistent buying pressure, suggesting that accumulation—rather than capitulation—is underway. This repeated defense indicates smart money may be quietly positioning for the next leg, not exiting positions.

Key Levels and Breakout Targets

The immediate resistance lies within the $2.56 zone, marked by the 200-period moving average. A sustained close above this level would align XRP with its broader uptrend structure and open doors to more ambitious targets:

• Primary resistance: The ascending trendline at approximately $4.10
• Implication: A breakout confirmation could catapult XRP into fresh highs and extended rally conditions

Conversely, downside risks remain present. A clear breakdown beneath $1.90 would invalidate the accumulation narrative and potentially trigger deeper retracements heading toward Q1 2026.

The Current State: Neutral-to-Constructive

Right now, XRP occupies a decision zone. The asset is neither broken down nor clearly in uptrend—it’s caught in a pocket where large players have historically entered with size. The weekly formation, supported by consistent demand at lower levels and the absence of panic selling, hints that the narrative may be shifting from weakness to preparation for a bullish reversal.

Until that $1.90 support definitively breaks, the technical evidence suggests accumulation conditions remain intact rather than indicating a terminal decline.