XRP Trapped in Tight Binary Breakout Setup Ahead of Crucial Catalyst

XRP has been trading around $1.06 for several days, creating a binary breakout or breakdown setup.

The token's price action is being closely watched as it attempts to break above its short-term and medium-term moving averages, which are currently sitting at $1.08 and $1.12, respectively.

A sustained move above these levels could improve the short-term picture and provide a basis for a more reliable rally.

However, if XRP fails to break above $1.08 and $1.12, it may continue its downtrend, with potential targets at $0.80 and $0.62.

The longer-dated read suggests that the current formation could be a falling wedge developing near a six-year support area, which typically resolves upward.

On the other hand, closing July beneath the monthly 50-period average for a second consecutive month has historically preceded the final phase of a bear cycle, with objectives in the $0.80 to $0.65 range.