After a period of underperformance, XRP is forming a technical setup that could drive its price up to $1 in the near future. The popular cryptocurrency has had a pretty disappointing year so far, with the broader crypto market doing far better. It is down by more than 15% since the beginning of the week, while other major assets have recorded gains of approximately 20%.
However, even though there has been a downturn recently, the weekly chart of XRP shows some good signs. It looks like there is an inverse head and shoulders pattern forming, which often signals a potential trend reversal.
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From May to December 2022, the left shoulder formed, followed by a low point — or head — in June 2023. Since August 2024, we have been seeing the right shoulder take shape. However, the key level for traders and investors to keep an eye on is the neckline around $0.65-$0.66.
If XRP breaks out above this zone, it could be on its way to the $1 point. Based on historical price patterns, this would be a typical target for such a formation.
Source: TradingView
Another reason to be bullish on XRP will appear if it breaks above 50-week and 200-week exponential moving averages. If the price holds above these levels, traders will probably have more confidence in the breakout narrative, which will make it more likely that the price will keep going up.
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The longer-term indicators show even more ambitious figures. The monthly chart shows a symmetrical triangle pattern, which often means a big breakout could be on the way. Some technical models say XRP could reach as high as $4.2 if the upper trendline is broken.
