XRP Breaks Out Of 2025’s Largest Downtrend, As Holders Mature

XRP has recently broken out from a multi-month descending wedge, signaling a potential reversal after the largest downtrend of 2025. Trading at $2.22, the cryptocurrency appears to be entering a new phase of bullish momentum. 

This shift could mark the end of the persistent price decline that started in January, setting the stage for further growth.

XRP Holders Are Holding On

The dominance of short-term holders has significantly declined, indicating a positive shift in market dynamics for XRP. According to the HODL waves, the supply held by investors holding between 1 and 3 months has dropped from 12% to 6% in the span of two months. 

This shift suggests that more short-term holders have transitioned into mid-term holders, reducing the likelihood of immediate sell-offs. This maturation of holdings is a positive sign, as it indicates more stability and less selling pressure in the short term stemming from confidence in price recovery.

XRP’s macro momentum is showing promising signs as the cryptocurrency pulls away from a potential Death Cross, which could have signaled a significant decline in price. The 50-day Exponential Moving Average (EMA) is currently trending upward, providing support for XRP as it moves away from bearish territory. The candlesticks are also positioned above the 50-day EMA, signaling that the altcoin is gaining strength and may continue its upward movement.

The pullback from the Death Cross and the upward movement of the 50-day EMA provide technical evidence that XRP’s price could continue to rise. This shifting momentum, combined with improving market sentiment, suggests that XRP is setting itself up for a potential rally. Investors will closely watch these indicators as signs of further recovery.

XRP Price Is Aiming At A Rally

XRP is currently trading at $2.22, breaking out of a near 5-month-long descending wedge. If this breakout continues, it will mark the end of the largest downtrend of the year, which started in January. The next key resistance is at $2.38, and a successful breakout above this level could signal further upward movement for XRP.

If XRP maintains its current bullish trajectory, the altcoin could rise to $2.56 after breaking through the $2.38 resistance. Flipping $2.56 into support would further confirm the breakout and indicate that XRP is entering a more sustained phase of growth. This would set the stage for continued price appreciation.

However, if XRP fails to break the $2.38 resistance, the price could fall back to $2.02. Losing the $2.16 support level would invalidate the bullish thesis, signaling a potential reversal in sentiment and a resumption of the downtrend. The next few days will be crucial in determining whether XRP can maintain its upward momentum or face further declines.