XRP Faces Bearish Setup as Riley Flags Rising Wedge Formation Risk

TLDR

• Patrick L Riley warned XRP traders about a rising wedge pattern that may signal weakening momentum.
• XRP was trading at $3.07 when the warning was issued with macroeconomic conditions still favorable.
• The chart shows narrowing upward trendlines with volume compression indicating a possible breakout or breakdown.
• On-chain data revealed large holders bought nearly 900 million XRP and sold $1.9 billion worth within 48 hours.
• Former support levels have turned into resistance which could push prices lower if not reclaimed.

Market analyst Patrick L Riley has issued a direct warning regarding XRP’s short-term technical setup. He highlighted a rising wedge formation, which often signals weakening bullish momentum. While macroeconomic conditions remain favorable, he stressed that immediate market structure demands attention.

Riley’s alert came as XRP price traded at $3.07, with notable on-chain activity adding to market complexity. Large holders moved significant amounts, creating uncertainty in the near-term trend. Traders are watching price action closely for confirmation of any breakout or breakdown.

He emphasized that exposure should be managed carefully until technical levels provide clarity. “Patience and discipline remain essential,” Riley stated. The market’s microstructure could diverge sharply from broader sentiment.

XRP Charts Indicate Possible Bearish Reversal

The rising wedge on XRP charts shows converging upward-sloping trendlines, often seen before a downside move. Price continues making higher highs and higher lows, but the range is narrowing. Volume patterns suggest weakening momentum, which supports Riley’s analysis.

Be careful here $XRP traders. While the Macro is extremely Bullish, the Micro shows a 'Rising Wedge' which is generally a Bearish scenario. Also the former support is now the resistance.#NFA but I stay in $XRP until a clear direction is determined. Be patient, we will break… pic.twitter.com/p8FcNPv8mP

— Patrick L Riley (@Acquired_Savant) August 13, 2025

A breakdown from the wedge with strong volume would confirm the bearish pattern. Traders see this as a potential short signal. However, a decisive breakout above the wedge would invalidate the setup.

The presence of compressed trading volume further aligns with the pattern’s typical behavior. A sharp surge in volume after the wedge resolves is expected. This could lead to a strong directional move.

On-Chain Movements Intensify Market Pressure

Recent on-chain data shows nearly 900 million XRP accumulated in two days, worth about $2.9 billion. Simultaneously, large holders sold around $1.9 billion worth, creating opposing market forces. This reflects a balance between bullish accumulation and profit-taking.

Such opposing flows amplify XRP’s volatility in the near term. Market participants see these movements as a sign of upcoming price swings. Both technical and on-chain data point to heightened short-term risks.

The chart also reveals a polarity shift, with former support now acting as resistance. Failure to reclaim these zones could trigger further declines. A clear breakout above resistance would negate the bearish scenario.