While most traders were watching Bitcoin dominate the headlines last week, XRP quietly broke above a downward-sloping trendline that had been capping every recovery attempt since late May. That move, on July 21, may have been the quiet trigger for a bigger run.
On the daily chart, XRP has completed an inverse head-and-shoulders formation, a pattern that typically marks the end of a downtrend. The structure took roughly six weeks to build and has a measured upside target of $1.32, around 16% above the July 23 price of $1.13.
How the Pattern Was Built
The story starts in early June. XRP had been holding above a demand zone at $1.32 ever since the broader crypto market sold off in February, with buyers consistently stepping in each time price dipped toward that level. That changed on June 1, when bears finally pushed through and sent the coin lower.
The left shoulder formed during the drop to $1.05 on June 6. Then came the head: a deeper slide to $1.009 on June 26, which brought XRP within a whisker of the psychologically significant $1.00 mark. Buyers defended that floor hard. The subsequent bounce set the stage for the right shoulder, which built during another pullback to $1.05 on July 13. From there, XRP climbed roughly 8% to its current level, completing the formation.
The neckline of the pattern sits near $1.09. Analysts watching the setup say that as long as XRP holds above that level, the bullish structure stays intact. A close back below $1.09 would put the whole thesis in question.
Whale Activity Adds Weight to the Setup
Technical patterns carry more conviction when they're backed by real money moving. On July 22, XRP whales accounted for 77.8% of all withdrawals from centralized exchanges, according to on-chain data cited in a recent report. That kind of concentration matters: large holders pulling coins off exchanges typically signals accumulation rather than distribution, since you don't need a cold wallet to sell.
The trendline break itself came on a roughly 3% intraday rally, enough to close decisively above resistance that had rejected XRP at progressively lower highs after the May 30 peak of $1.36. Each of those lower highs had aligned neatly with the declining trendline. Breaking it doesn't guarantee follow-through, but it does shift the immediate momentum toward buyers.
What $1.32 Actually Represents
The target isn't arbitrary. It corresponds to the same support zone that XRP broke below in early June, now flipped into resistance. Reclaiming $1.32 would essentially erase the June breakdown entirely and put XRP back inside the range it traded in for most of the post-February recovery. Beyond that level, the next meaningful area to watch is the May high of $1.36.
The pattern's logic is straightforward: three successive lows where each low is shallower than the last signals that sellers are losing the ability to push price down further. Combined with the trendline breakout and the unusual whale activity on July 22, the setup has more confirmation behind it than most chart patterns get.
This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
