XRP is on the verge of completing an inverted head and shoulders (H&S) pattern, a significant bullish reversal signal that could result in a notable price increase. According to market analyst Steph, if this formation is confirmed, XRP could potentially exceed $1 soon, setting an initial target of $1.10.
Formation of the Inverted Head and Shoulders Pattern
The formation of the inverted head and shoulders pattern started in late 2023, with XRP showing signs of a reversal from its earlier downtrend. In December 2023, the digital asset dropped from $0.70 to a low of $0.4855 in January 2024, marking the formation of the left shoulder.
This decline was followed by a recovery, where the token surged to $0.7449 by March 2024, fueled by broader market gains, particularly Bitcoin’s all-time high above $73,000. This upward movement solidified the completion of the left shoulder.
Following this recovery, the market experienced another correction, which affected XRP. By July 2024, the asset had dropped to $0.3824, forming the head of the pattern. After this, the token rebounded to $0.6580 by the end of July, completing the head formation.
Currently, XRP is in the process of forming the right shoulder. A recent drop to $0.5026 on September 6 laid the groundwork for this. At the time of press, the token is trading at $0.5787, and according to Steph, the right shoulder will be confirmed if XRP continues its upward trend and successfully breaks through the neckline at $0.6580.
Price Projections Based on the H&S Pattern
If the neckline at $0.6580 is breached, it is expected that XRP could experience a swift rise, with the potential to reach $1.10 in a relatively short period. Market analysts are closely watching this development, as the last time XRP reached $1 was in December 2021.
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Technical Indicators Supporting Bullish Outlook
Apart from the inverted head and shoulders formation additional technical indicators, such as the Bollinger Bands and the Relative Strength Index (RSI), also point to the possibility of a bullish breakout for XRP.
On the daily chart, XRP is trading slightly above the middle Bollinger Band, which is the 20-day moving average, at $0.5573. This position suggests that despite ongoing market fluctuations, buyers have maintained control, keeping the digital asset on an upward trajectory.
The lower Bollinger Band, positioned at $0.5152, has provided strong support during recent price declines, while the upper band at $0.5990 acts as a short-term resistance level.
If XRP manages to surpass the upper Bollinger Band, it could build momentum to test the key neckline resistance at $0.6580. A successful breach of this resistance would likely trigger a rally, pushing the token toward the projected target of $1.10 as suggested by the H&S formation.
RSI Indications
The RSI, another key technical indicator, further supports the bullish case. Currently, the RSI stands at 53.60, while the signal line is at 48.03. An RSI reading above 50 typically indicates positive market momentum, signaling that XRP still has room to rise in the short term. This suggests that the bulls could remain in control, potentially driving the price higher in the days to come.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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