The recent broad market downturn has impacted most cryptocurrencies, but XRP has shown surprising resilience. While the price dipped to around $0.46, a multi-month low, it has repeatedly found support at this level. The refusal to go down has formed a technical indicator known as a double-bottom pattern, often seen as a bullish signal.
Double Bottom Pattern and Support Level
The double-bottom pattern emerges when an asset’s price reaches a low, rebounds slightly, and then retests the same or very similar low point. This creates a W-shaped price movement on the chart, signifying a potential reversal in the downtrend. The repeated support at $0.46 suggests buyers actively enter the market at this price point, preventing further declines.
If the double-bottom pattern validates and XRP decisively breaks above the resistance level (the peak between the two lows), a price increase could be expected. A common technical analysis technique suggests a price target of $0.5 in this scenario.
This target is calculated by adding the height of the double bottom pattern (the difference between the support level and the low point) to the breakout price. However, the optimism does not stop there, as XRP shows other significantly bullish patterns.
Bullish Divergence on the RSI
The Relative Strength Index (RSI) is a technical indicator that measures the momentum of price changes. Interestingly, while the price of XRP has been making lower lows, the RSI has not followed suit. This divergence suggests that the downward pressure might weaken, potentially aligning with the double-bottom pattern and hinting at an upcoming price reversal.
A Full Reset of the Stoch-RSI
A prominent analyst also recently predicted a full reset in XRP’s Stoch-RSI. The Stoch-RSI is an indicator that applies a stochastic oscillator to the RSI. It helps traders gauge whether the current RSI is overbought or oversold relative to its recent range.
XRP’s Stoch-RSI is currently oversold, but this oversold condition is no longer valid, and the price might be headed in the opposite direction, leading to a historic surge.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
XRP’s Potential
The double-bottom pattern and resilience present a potentially optimistic outlook for XRP. The double-bottom pattern and the other bullish indicators suggest that XRP is on the verge of a historic rally.
In March, a prominent analyst set a target of $371 for XRP based on Stoch-RSI momentum, and the digital asset might be on its way to this price soon.
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. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
