After Breaking Out Above a Longstanding Descending Trendline, XRP Entered What Traders Identify as the “Throwback” Phase—a Retest of the Broken Resistance

According to analysts, this retest is crucial. If the support level holds, XRP could enter the final “run” phase of the pattern

After breaking out above a longstanding descending trendline, XRP entered what traders identify as the “throwback” phase—a retest of the broken resistance, now acting as support.

According to analysts, this retest is crucial. If the support level holds, XRP could enter the final “run” phase of the pattern, which is usually followed by a sharp and rapid price rally. A successful hold often leads to strong upward momentum and has historically triggered significant bullish moves.

A VWAP-based analysis from October 25, 2024, offers insights into how XRP/USD might perform when measured against silver. Source: syrosone via X

Several bullish candlesticks have confirmed XRP’s breakout above the trendline, shifting the overall market structure in a positive direction. As long as the support holds, XRP appears well-positioned for a potential move toward new highs.

However, despite bullish technical indicators, XRP recently faced its most significant product outflows to date.

As reported by CoinShares, XRP-related investment products saw an unprecedented $37.2 million weekly outflow, effectively ending an 80-week streak of consistent inflows.

Interestingly, this outflow came amid a broader market trend of increasing capital flowing into crypto assets. While Bitcoin and Ethereum continued to attract investor interest, XRP’s decline stood out. No specific catalyst was noted for the sell-off, prompting speculation around shifting investor sentiment or short-term profit-taking.

However, the broader XRP market remains relatively stable. Trading at $2.33 at the time of writing on May 27, XRP has held above key support zones, even as it confronts strong resistance levels near $2.35.

Pennant Formation Sparks Optimism

Technical analysts have also cited the formation of a bullish pennant pattern on XRP’s 4-hour chart. This continuation pattern typically signals the potential for a new move upward after a period of consolidation.

The XRP price has ranged for 126 days with declining volume, but a breakout toward a new all-time high looks imminent as key levels are retested. Source: CryptoColugo on TradingView

A break higher of the upper edge of the pennant could cement the next leg higher, with technical targets rising to $2.72—a 14.2% move higher from current levels. This is an estimate based on the use of the size of the flagpole of the pennant as a guide to the post-breakout move.

The MACD indicator now provides a buy signal as the blue MACD line crosses over the signal line. That’s another level of bullish optimism, especially if accompanied by greater trading volume. The long-to-short ratio for XRP/USDT on Binance also leans bullish at over 3.0, indicating that more traders are betting on price appreciation.

XRP Price Cooling, But Not Collapsing

XRP’s price has entered a brief cooling-off phase, influenced by Bitcoin dominance in the broader crypto market. At the moment, XRP is trading between a narrow range of $2.30 support and $2.35 resistance, with short-term momentum appearing indecisive.

Still, technical indicators such as a potential bullish divergence on the RSI (Relative Strength Index) suggest that a bounce may be on the horizon. Lower price lows contrasted with higher RSI lows hint at weakening selling pressure. For confirmation, however, XRP must hold above $2.30 and close above $2.35 with conviction.

If the asset fails to hold current levels, a drop to the $2.00–$2.15 range could be possible. However, this could set up the development of a bullish inverse head-and-shoulders pattern on the daily chart—often a precursor to a strong reversal upward.

Ripple Ecosystem Resilience Despite Legal and Market Pressure

Despite market fluctuations, XRP continues to benefit from strong fundamentals. The Ripple vs. SEC lawsuit remains a major storyline. Although XRP lawsuit news has created uncertainty for the Ripple market, a majority of investors believe that a resolution could release fresh momentum for the token.

XRP was trading at around $2.31, down 1.05% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Ripple CEO Brad Garlinghouse has consistently made the case for XRP’s utility as a bridge currency for international finance, citing growing usage of the Ripple ledger and adoption by the likes of Bank of America. If regulatory clarity is achieved, XRP’s value could see a material re-rating.

Furthermore, the adoption of Ripple in cross-border payment systems continues to grow, supporting the token’s usefulness in the broader Ripple crypto ecosystem.

Final Thoughts: Technical Strength Faces Off Against Investor Skepticism

As of late May 2025, XRP price prediction models favor a bullish outlook, underpinned by strong