Since last weekend, the cryptocurrency market has projected a low-volatility sideways trend, as China continues to retaliate against the United States’ barrage of new tariffs. The uncertainty has restricted Bitcoin’s recovery past $85,000, while most major altcoins, including XRP, struggle to hold stable support. However, the Ripple crypto shows an opportunity for a bullish breakout as price analysis reveals a reversal pattern emerging amid a recent rebound.
XRP Reclaims 200-Day EMA After Bear Trap
In the early weeks of April, the crypto market witnessed a major downturn as U.S. President Donald Trump introduced reciprocal tariffs on several countries. The sudden surge in selling pressure pushed the XRP price below a multi-month support of $2 and plunged the asset to a $1.6 low.
This breakdown was expected to accelerate selling pressure, but the Ripple cryptocurrency recorded a bullish turnaround as Trump announced a 90-day pause on additional tariffs. Thus, the coin price bounced over 29% within two weeks to the current trade at $2.08, while the CoinGecko data shows its market cap has bounced to $121.9 billion.
This upswing regained XRP’s position above the 200-day EMA and marked the previous breakdown as a bear trap.
Falling Wedge Pattern Drives Major Correction Trend
A deeper analysis of the 4-hour timeframe chart reveals that the renewed recovery is forming an inverted head-and-shoulders pattern. This chart setup is characterized by three distinct troughs: a deeper central low (the head) flanked by two higher lows (the shoulders).
The neckline resistance, connecting the interim highs between the shoulders and head, is at $2.2, coinciding with the 50-and-100-day EMA slope. A successful breakout above this neckline could confirm the pattern and push the price another 12% to challenge the wedge resistance at $2.5.
Since mid-January 2025, the two trendlines as dynamic resistance and support have maintained a steady correction trend, and therefore, the potential breakout will signal a change in market dynamics.
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