XRP has flashed a bullish signal with a potential 1:2 risk-to-reward ratio.
The altcoin is forming a reversed Head and Shoulders pattern at a crucial level.
Multiple indicators support XRP’s bullish signal.
XRP is showing a bullish signal with a potential 1:2 risk-to-reward ratio, exciting traders about the prospects of the once-embattled cryptocurrency. Technical indicators point to a reversed Head and Shoulders pattern on the altcoin’s daily chart, with the second shoulder ready to form.
Importantly, XRP has moved in line with other major cryptos like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) since the court ruling on Ripple’s case with the SEC. The resilient altcoin has traded sideways, alongside these other cryptos, since pulling back from the 50% surge that followed the court ruling.
TradingView’s data shows the altcoin fell 15% before shifting into a sideways trend. It has stayed in this direction for the past nine days, forming the base of the second shoulder in the bullish pattern with a potential 1:2 risk-to-reward ratio.
From observing XRP’s daily chart on TradingView, the Ripple Labs native crypto has established significant support fueled by a confluence of indicators. The crypto token’s price action reveals support around the $0.55 price level. That coincides with the 0.5 Fibonacci retracement level and marks the base of the second shoulder in the bullish pattern.
XRPUSD Daily Chart on TradingView
XRP surged 2.12% earlier today, potentially signaling a trigger for the bullish rally. The upward movement paused at the 0.618 Fibonacci resistance, a break above which would open the way for the price to move towards the $0.65 target.
It is worth noting that XRP has displayed bullish behavior beyond the developing Head and Shoulders pattern. The altcoin resisted bearish pressure during the recent market crash and trended sideways in consolidation. XRP’s price action reflects heightened optimism among traders, with most expecting the altcoin to pick up momentum after achieving regulatory clarity.
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