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$XRP may stage an upward push toward a new all-time high once it breaks above its multi-month descending channel structure.
The broader crypto market has continued to face sustained downward pressure, losing more than $2 trillion since October 2025, as altcoins like $XRP witness massive losses. Interestingly, chart data shows that this downturn has placed $XRP in a multi-month descending channel, and a breakout could lead to $4.
Key Points
- $XRP’s market cap has declined by $101 billion since October 2025, contributing to the $2.01 trillion loss suffered by the broader crypto market within this period.
- Market data shows that $XRP has continued to trade within a multi-month descending channel over the past seven months amid the downturn.
- With the price action now close to the tip of the channel, a breakout could propel $XRP to a new all-time high of around $4.
- Historical data confirms that the last time $XRP broke out of a similar channel, the price soared to the $3.66 $ATH in response.
$XRP Slips into Descending Channel Amid Downturn
This structure was recently highlighted by market analyst and trader Don Wedge, as he called the investing public’s attention to the two descending channels that have emerged on the 3-hour $XRP chart since January 2025.
For the uninitiated, a descending channel represents a pattern where price moves between two parallel downward-sloping trendlines. The top line acts as resistance, showing where rallies tend to stall, while the bottom line acts as support, where the price finds buyers. Notably, the channel shows a controlled downtrend, not a sudden crash.
The current descending channel that has contained $XRP’s price started forming after $XRP collapsed from the $3.6 peak in July 2025. Data shows that since this drop, $XRP has persistently witnessed lower highs and lower lows, now down nearly 62% from the July peak, as it trades for $1.37.
Previous Breakout Attempts
$XRP pushed to break above the channel’s upper trendline at $3.1 in October 2025 and $2.4 in January 2025, but faced resistance at each attempt. Also, bears tried to breach below the lower trendline at $2.7 in August 2025, $2.24 in October 2025, $1.87 in November 2025, and $1.1 in February 2025. However, $XRP held the support each time.
With $XRP now moving closer to the tip of the channel, Don Wedge believes a breakout is more feasible at this point. As $XRP currently trades near the lower boundary of the channel, this may provide the ideal entry point. The analyst suggests that the breakout could push to the upside, citing historical data to present his targets.
Historical Data Supports Breakout Thesis
Specifically, $XRP had also witnessed a similar descending channel earlier in 2025. After the token soared to $3.4 in January 2025, it faced resistance in this area and sustained bearish pressure. This pressure resulted in a downturn, forming the earlier descending channel.
Interestingly, as $XRP moved close to the tip of the channel, it broke to the upside at $2.2 in late-June 2025. The upsurge that followed pushed $XRP’s price to the $3.6 all-time high by July 2025. Don Wedge expects $XRP to break out to the upside soon at around $1.7, possibly leading prices to a new $ATH of $4.
However, investors should note that this remains speculative. If $XRP breaks to the downside, it could trigger increased bearish pressure, leading to steeper lows. Moreover, there is no guarantee that $XRP could reach the $4 target even if it breaks to the upside.