XRP price shows a massive W-bottom formation that forecasts a 43% breakout move to $0.765.
Ripple bulls can extend this run-up to tag March 28, 2022, high at $0.93, allowing the altcoin to double in value.
Invalidation of this bullish outlook will occur if the remittance token falls below the $0.422 support floor.
XRP price is among one of the altcoins that shows promise of an explosive move. As noted in the March 18 article, Ripple exploded and hit the targets mentioned. Now, the remittance token pulls back as investors book profits, providing sidelined buyers and hodlers an opportunity to reaccumulate before the next leg.
XRP price ready for its next journey
XRP price shed roughly 68% between March 28, 2022, to June 18, 2022, as the bear market raged on. As the remittance token formed a local bottom at $0.287, it attempted a recovery rally but was largely stuck between the $0.532 and $0.336 range for the most part.
On January 2, 2023, XRP price declined sharply to form another local bottom at $0.300. This move was followed by a 95% ascent in the next three months. The most recent rally formed a local top at $0.585, but Ripple is currently in pullback mode.
This price action from March 2022 to March 2023 has led to the formation of a double bottom. The technical formation is noted when the trend shifts from bearish to bullish, and in this case forecasts a 43% upswing of XRP price to $0.765. The target is obtained by measuring the distance between the mid-peak and the second bottom and adding it to the breakout point at $0.532.
As the altcoin retraces, it provides investors an opportunity to reaccumulate. The best level to buy XRP again is between $0.422 and $0.500. If the trend is strong, the pullback is unlikely to head below $0.422. Hence, a sustained move lower should be cause for concern.
In a highly bullish case, a bounce in this accumulation zone could propel XRP price to tag the range high of the 68% drop at $0.930. This move would constitute a 100% gain for Ripple holders.
While the bullish outlook for XRP price might seem overwhelming, it is because the crypto landscape has shifted. The sentiment seemed to have picked up steam, and the alt season narrative has kicked in after Elon Musk briefly changed Twitter’s logo with DOGE’s.
So another 100% upswing for Ripple is not outside the realm of possibility. However, if the macroeconomic situation worsens and the negative effects cause Bitcoin price to tank, then investors need to be cautious. If XRP price swings lower and flips the $0.422 support floor into a resistance level, it would invalidate the bullish thesis.
Such a move would push XRP price back into consolidation mode and could also trigger a 20% crash to $0.336.
