XRP Price Could See a 20% Jump, According to Technical Analysis
A recent technical analysis by crypto analyst Egrag suggests that XRP may experience a bullish reversal in the near future. The analysis identifies an inverse head and shoulders (H&S) formation on the XRP/USD chart, indicating a potential price jump of around 20%.
Descending Channel Breakout Leads to Inverse H&S Pattern
The XRP price has been trading within a descending channel since November, which is typically considered bearish. However, last week, the price broke out of the channel, leading to the emergence of the inverse H&S pattern. This pattern is characterized by two smaller peaks (shoulders) on either side of a larger trough (head).
Key Price Levels and Potential Rally
The left shoulder formed around the $0.586 support level, with the head dipping as low as $0.574 before rising to form the right shoulder at $0.593. If there is a decisive breakout above the neckline of approximately $0.6289, XRP prices could rally towards the $0.7000 mark, representing a 20% increase from the current price.
Factors to Consider and Bearish Scenario
It’s important to note that the validity of the inverse H&S pattern will only be confirmed with a clear break and closure above the neckline. Market participants should consider various factors, including market sentiment and news flow. In a bearish scenario, where the pattern is invalidated, XRP could move towards the trend line of the descending channel.
XRP Price Levels and Resistance
Currently, XRP is trading at $0.61348, with the key resistance level at $0.628 on the 1-day time frame. Support levels to watch are $0.5564 and $0.53.
Hot Take: XRP May Be Poised for a Bullish Reversal
According to a recent technical analysis, XRP’s price may experience a significant jump in the near term. The formation of an inverse head and shoulders pattern suggests a potential bullish reversal, with a possible rally towards the $0.7000 mark. However, market participants should closely monitor key price levels and consider other factors before making any trading decisions.
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