Crypto analyst JD has cautioned XRP holders about a key technical setup unfolding on the weekly chart. According to JD, XRP is currently trading at $1.2920 on Bybit and remains locked inside a large falling wedge formation that has spanned several months. This pattern, he noted, has influenced the direction of XRP’s price after a series of distinct declines from its previous highs.
Falling wedge structure and historical declines
JD pointed to a sequence of lower highs since XRP’s peak near $3.40. The digital asset first lost 50.15% from that top, saw a partial recovery, then fell by 65.94% from the next local high. The latest downtrend marked a 31.24% drop.
Each major decline, JD observed, coincided with a bearish crossover in the weekly Relative Strength Index (RSI). This indicator has appeared four times during the ongoing pattern, including in the current market phase.
The RSI currently stands at 46.77, which is below its midpoint of 50. JD has flagged these bearish RSI signals as precursors to previous sell-offs and highlighted that the current setup mirrors prior declines on the chart.
During his analysis, JD stated that if bulls do not gain momentum soon, the persistent falling wedge could trigger another downside move for XRP, potentially pushing it into what he calls his “pink box” demand zone.
The falling wedge pattern itself continues to narrow and is set to approach a crucial resolution point projected for early 2027. JD maintains that for the bearish case to be invalidated, buyers would need to regain control above the wedge’s upper trendline.
Mini dictionary: Falling wedge — A falling wedge is a bullish chart pattern defined by converging trendlines that form as prices make lower highs and lower lows. It often signals a potential reversal if price breaks above the upper resistance.
JD’s trading strategy and new buy target
JD reported taking profits near $3.37 at the previous local peak before re-entering XRP at $1.01. He described these levels as his main trading range for this cycle, with both transactions announced to his followers in advance.
His attention now turns to what he calls the “pink box,” a support range between $0.75 and $0.85. JD stated that this zone would serve as his next potential buy area if XRP reaches these levels. In his message, he emphasized that market bulls must act to prevent the falling wedge from driving prices into this lower region.
In his direct message to followers, JD explained that if buyers fail to step in, the falling wedge could send XRP into his pink box, making this zone a possible new accumulation point.
Community sentiment and outlook
JD’s analysis drew interest and feedback from several members of the XRP trading community. Trader Ville Manninen responded that he expects XRP to reach JD’s pink box target before the end of the year. Another trader, going by the name Blank, acknowledged JD’s previous calls but noted that aiming for the pink box leaves XRP exposed to further downside if buyers do not regain control.
Despite differences in opinion on the timeline, there is consensus that momentum at current levels will dictate XRP’s next major move. If the falling wedge compresses further without enough buying pressure, the market could see a retest of the $0.75 to $0.85 support band.
Key level to monitor
JD did not assign a fixed date for when his target zone might be reached. He reiterated his trading strategy, having already repurchased XRP at $1.01, and will consider additional accumulation if the price enters the pink box area. Market attention now centers on whether bulls can reverse the trend or if downward pressure continues to mount within the existing chart pattern.
