According to Cointelegraph, XRP (XRP) has underperformed the broader cryptocurrency market in 2024, experiencing a year-to-date decline of over 15%, while other assets have collectively gained around 20% during the same period.
However, a combination of fractal and technical indicators suggests a potential significant rebound for XRP in the coming weeks. The weekly chart of XRP indicates a possible bullish reversal, characterized by an inverse head and shoulders pattern. This pattern includes a left shoulder formed between May and December 2022, a head in June 2023 marking the lowest point, and a right shoulder developing since August 2024. The critical neckline, a downward-sloping trendline connecting the highs of the shoulders and head, is positioned near the $0.65–$0.66 range.
Technical projections indicate that a successful breakout above the neckline could propel XRP prices towards $0.90 to $1.00 in 2024. This target is calculated by adding the difference between the neckline and the head’s low (approximately $0.42) to the breakout point, representing an approximate 100% increase from current price levels. Additionally, XRP is trading above its 50-week and 200-week exponential moving averages (EMA), and a decisive rally above these levels would further support the breakout narrative.
Despite the bullish outlook, downside risks remain if XRP’s price retreats after or before testing the neckline as resistance. This level coincides with a multi-year descending trendline resistance. Another bullish indicator is a large symmetrical triangle on the monthly chart, which, according to veteran market analyst Charles Bulkowski, often leads to significant gains. If XRP breaks above the upper trendline, it could signal a broader bullish trend. The projected upside can be estimated by taking the triangle's height at its widest point (roughly the difference between $3.90 and $0.17, or $3.73) and adding that to the breakout level.
Based on this calculation, an upward breakout from the current level near $0.53 could target $4.20 or higher, as suggested by the Fibonacci extensions marked on the chart. The nearest potential resistance is at the 0.236-0.382 Fibonacci range, or the $0.71-1.05 area, coinciding with the inverse head and shoulders bullish reversal target. The 50-month EMA at $0.526 also acts as a dynamic support, and staying above this level enhances XRP’s potential to reach $1 by the end of 2024 or early 2025.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
