Momentum is building for XRP within a multi-month falling wedge, with a breakout holding the potential for an over 2x rally.
Market analyst Crypto Michael identified this trend in his July 1 X post. His commentary sees XRP finally breaking free from a pattern that has compressed its price action since November 2024 to retest prior highs.
XRP Building Momentum for a Breakout
Michael revealed that he has been accumulating XRP at the current levels, taking advantage of the dip to buy at a lower price. Notably, XRP has dropped over 70% from its July 2025 all-time high of $3.66. Yet for the experienced market trader, the asset has not lost its appeal, particularly due to a formation on the weekly chart.
The shared chart shows that XRP has started tightening within a falling wedge. The coin began to form this pattern during the historic November 2024 bull run. XRP established the structure’s support trendline around $2.10, then consolidated for months before starting to form the upper trendline in July 2025.
Since the peak at $3.66, XRP has consistently formed lower highs and lower lows. Amid the downtrend, the structure’s upper and lower resistance began to tilt closer to each other, forming a more constricted consolidation.
Notably, when price action becomes more compressed within a structure, it signals that momentum is building. Buyers and sellers are beginning to find a balance, which precedes a violent breakout. It is in anticipation of this decisive move that the analyst noted he was buying XRP here.
Breakout Targets Major Support
Last week, XRP tested the lower trendline of this falling wedge, with buyers stepping in to defend the support. A strong start to July has seen the asset bounce from the support, up 6% from the lows to $1.06.
Michael expects a breakout soon towards the $1.90 to $2.10 price region, a 79% to 98% bounce from the current market price. Notably, this is a strong support region for XRP. During the 2021 bull run, XRP peaked around this price level, specifically at $1.96.
After breaking above in November 2024 to peak at $3.39 in January 2025, XRP also pulled back to the $2 support region and built a base there for several weeks. From there, it rallied to its current ATH.
This makes reclaiming the $1.90-$2.10 support crucial. A wedge breakout to this region and a sustained trend above open the path for a moonshot to much higher prices.
Bullish Network Activities Boost Breakout Prospect
The breakout prospect receives a boost from the recent growth in network activity around the XRP ecosystem. For context, newly activated addresses on the XRP Ledger reached 6,000 daily, a 3-month high.
XRP active addresses also increased 36% in two weeks, reflecting renewed network usage. On top of this, the Whale vs. Retail spread across all exchanges rose by 24.9%, showing that whales are rapidly moving XRP off exchanges more than retail users.
A string of these strong on-chain developments could provide the required fuel for the wedge breakout.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.