Ripple (XRP) Price Breaks Out of Falling Wedge Pattern, Targeting $2.91

On May 22, 2025, the 4-hour chart for XRP/US Dollar on Bitstamp shows a falling wedge pattern forming between May 13 and May 21.

The 4-hour chart for XRP/US Dollar on Bitstamp shows a falling wedge pattern forming from May 13 to May 21, which broke out today, May 22.

A falling wedge is a bullish pattern created by downward-sloping, converging trendlines, indicating decreasing bearish pressure and potential reversal to the upside.

As the price broke out of the wedge, it climbed 3% from the breakout point. It moved from around $2.34 to $2.41787, going above the 50-period Exponential Moving Average (EMA), now at $2.38740.

If this breakout holds, the target lies at around $2.91720, which is a 20% increase from the current price level. This target is the sum of the wedge's height and the breakout level, a common projection method used in technical analysis.

On the same timeframe, the Relative Strength Index (RSI) reached 56.70, showing mild bullish momentum. RSI above 50 supports the breakout and signals increasing buyer interest.

Volume during the breakout was 1.54 million, which also contributes to the strength of the move. Higher volume usually confirms the strength of a breakout.

This setup and the current market conditions suggest that traders are reacting to the wedge breakout rather than waiting for broader market signals.

Currently, XRP is testing its short-term resistance zone, which is seen between $2.45 and $2.50. A strong move above this level may unlock the projected path toward the $2.91 target.

XRP futures on CME

Meanwhile, XRP futures on CME Group reached $25.6 million in notional volume over their first two days of trading.

CME launched the contracts on Friday, May 19, offering both standard (50,000 XRP) and micro (2,500 XRP) contracts. They also introduced a new crypto index to measure the performance of the digital asset market.

On the first day, traders exchanged 120 standard and 206 micro contracts. This activity adds up to around 6.5 million XRP, based on the figures reported by CME.

The following day, another 59 standard and 485 micro contracts were traded, bringing the two-day total to 179 standard and 691 micro contracts. This adds up to around 10.6 million XRP.

At a spot price of $2.39, the total equals $25.6 million in notional volume.

For perspective, Solana’s (SOL) CME futures, launched in March 2025, reached $12.3 million in their first two days.

XRP futures contracts on CME are cash-settled and reference the CME CF XRP-Dollar Rate, which is updated daily at 11:00 a.m. Eastern Time.

This design ensures that the futures price remains closely aligned with the underlying spot market.

In the first 48 hours of trading, there was no significant premium or discount between XRP futures and the spot price. This pattern suggests that traders are not actively betting on large, immediate price shifts.

Instead, participants may be using these futures contracts to hedge existing exposure to XRP in other markets or to gain efficient exposure to the token in a regulated and centrally cleared manner.

This can indicate a cautious or balanced market outlook, which is not heavily biased towards either bullish or bearish sentiment.

The launch of XRP futures on CME offers institutional investors a regulated way to gain exposure to the altcoin. It expands the crypto offerings available on the world’s largest futures exchange.

Earlier this year, Coinbase (NASDAQ:COIN) became a strategic investor in Circle, joining an existing investor base that includes Siemens (OTC:ADDYY) and DTCP.