Descending Wedge Pattern Signals Potential 27% Rally as XRP Attracts Institutional Interest

XRP has been under pressure, declining approximately 15% throughout December, yet technical formations and accumulated market signals suggest a possible reversal may be developing. Trading at $2.05 currently, the asset remains down 47% from its yearly peak, with market capitalization retreating from $210.4 billion to $124.56 billion as daily trading volume contracted significantly.

Whale Accumulation and ETF Buying Provide Support

The recent price consolidation has drawn notable interest from major token holders. Analytics from Santiment indicate that the number of whales holding between 10,000 and 1 billion XRP tokens has increased since December 22, signaling fresh accumulation at lower price levels. This whale behavior often precedes sustained price movements, as large holders typically position before volatility spikes.

On the institutional side, American investors have demonstrated consistent commitment to XRP through ETF purchases. SoSoValue data reveals approximately $64 million in ETF inflows this week alone, bringing total cumulative inflows to $1.14 billion since product approval in November. Notably, these funds have recorded zero net outflow days since launch, indicating sustained institutional confidence despite short-term volatility.

Technical Setup: Descending Wedge Formation

The daily chart displays a classic descending wedge pattern—a formation characterized by progressively lower highs and lower lows that typically emerge at the conclusion of downtrends. Such patterns are considered bullish reversal setups when accompanied by volume confirmation and momentum shifts.

XRP is currently consolidating near the $1.90 support-resistance level. A decisive break above this threshold would confirm the descending wedge pattern completion and potentially trigger a rally toward the $2.58–$2.65 resistance zone, representing approximately 27% upside from current trading levels. This zone has functioned as a critical overhead level throughout the year.

Momentum Indicators Suggest Inflection Point

Technical momentum indicators are beginning to align with bullish scenarios. The Aroon Down indicator has fallen to 50%, reflecting diminished selling pressure within the price structure. Simultaneously, the Relative Strength Index (RSI) is testing oversold territory, a condition historically associated with mean reversion and potential trend reversals. These converging signals suggest that accumulated selling may be nearing completion, potentially paving the way for renewed upside interest in XRP’s near-term trading activity.