XRP Bullish Engulfing Pattern Signals Potential Run Toward New All-Time Highs

XRP just printed a textbook bullish engulfing pattern—and traders are betting this could be the start of something massive.

The Technical Setup

That classic candlestick formation flashed across charts this week, swallowing previous sessions' losses with conviction. When this pattern emerges after a downtrend, it screams one thing: buyer momentum is overwhelming seller exhaustion.

Market Psychology at Play

Traders who missed the last leg up are now FOMO-buying dips. Meanwhile, short-sellers are getting squeezed as XRP defies the broader market's hesitation. The pattern suggests institutional accumulation beneath retail radar—smart money positioning before the next narrative cycle.

Regulatory Tailwinds

Recent clarity from global regulators gives XRP an edge over regulatory-gray competitors. While other coins dance around securities classification, XRP's established legal framework acts like rocket fuel for institutional adoption.

Price Targets in Sight

If volume confirms the breakout, technical analysts project a measured move targeting levels not seen since the 2021 mania. The pattern's reliability historically delivers 70%+ success rates in crypto markets—though past performance remains the favorite disclaimer of finance suits who missed Bitcoin at $100.

Timing the Breakout

Watch for sustained closes above key resistance with accelerating volume. False breakouts plague impatient traders, but confirmation over the next 48 hours could trigger algorithmic buying waves. The pattern's already got derivatives markets buzzing—funding rates ticking upward signal growing leverage appetite.

Just remember: Wall Street spends millions on AI predicting these patterns, while crypto traders spot them with a $10 tradingview subscription. Sometimes simplicity cuts through the noise better than any Bloomberg terminal.

Weekly Structure Builds Toward Breakout Zone

XRP has continued to trade within a symmetrical triangle pattern on the weekly chart. The structure has held for nearly a year, with the price now moving close to the upper trendline NEAR $3.44. According to market analyst EGRAG CRYPTO, this level marks a potential breakout point. If cleared, XRP could target a move toward $7.34 based on the range of the formation.

The setup includes multiple Bullish Engulfing candles, which in past cycles have appeared before upward moves. These patterns have been noted in early 2025, with similar formations seen earlier in XRP’s trading history. EGRAG pointed out, 

“The next time we see a Bullish Engulfing Candle on the weekly chart, XRP could shoot up to new all-time highs.”

Interestingly, the current weekly chart shows XRP remaining above a key support denoted as the Bull Market Support Band. This support has remained intact in recent weeks, as observed from the chart where it is drawn as a curved ribbon. It must hold for any structure to remain intact.

EGRAG mentioned that price movement inside this band has been stable. Traders have continued to defend the range, with no confirmation yet of a breakdown. This suggests the market remains in a controlled phase while waiting for a clearer signal.

Support Levels Below Remain Active

Two levels on the downside have been marked as areas of interest in case of further weakness. One is $2.60, sitting near the center of the triangle. The other is $2.37, which is near the 0.618 retracement level. EGRAG noted this area could offer a final low before any potential rally. They said, 

“If we hit $2.37 before the next rise, it’s your chance to buy cheap.”

XRP was priced at $2.72 at press time, reflecting a 3% decline in the past 24 hours and an 11% drop over the last week. Trading volume stands above $9 billion for the same period.

Compression Pattern Signals Move Ahead

Sistine Research has also found a tightening price range on the weekly chart. This WOULD be a third compression phase since the last United States election, having all compressed at a higher price level. The present range is the narrowest of all.

Sistine noted that order book liquidity has thinned, and most activity is now centered near the current price. They added, 

Expecting a large expansionary MOVE from XRP soon (within months).

As the price action compresses, so does the orderbook, with most liquidity compressing into a tighter and tighter range.

This results in very large gaps in liquidity.

XRP is on its 3rd compression since the… pic.twitter.com/hjRVzeK8wc

— Sistine Research (@sistineresearch) September 24, 2025

The setup mirrors previous cycles in 2017, 2021, and 2025, all of which led to strong price moves.