XRP, one of the most popular cryptocurrencies, has struggled with underperformance for much of this year. While the broader cryptocurrency market has experienced significant gains, XRP has faced a downturn, declining by more than 4% in recent weeks and 10% in the last month.
In contrast, other major digital assets have seen price increases of over 15%. However, despite this underwhelming performance, XRP’s technical chart suggests a potential reversal is on the horizon.
Recent analysis indicates that XRP may be forming an inverse head and shoulders pattern on its weekly chart. This pattern often regarded as a reliable indicator of a bullish trend reversal.
The left shoulder of this formation began forming in May 2022 and continued through to December 2022, with the head appearing in June 2023. Since August 2024, the right shoulder has been developing. The completion of this pattern points to a critical resistance level — the neckline — located around $0.65 to $0.66.
If XRP breaks above this zone, the price could rally toward the $1 mark. Historically, this price target aligns with expectations for this type of pattern. However, to solidify the bullish outlook, traders will also be watching whether XRP can maintain its position above the 50-week and 200-week exponential moving averages. If the price stays above these key technical levels, market confidence in a sustained upward move is likely to grow.
Symmetrical Triangle spotted on XRP’s Monthly Chart
In addition to the weekly chart, longer-term indicators show a positive outlook. On the monthly chart, XRP is exhibiting a symmetrical triangle pattern. This type of technical formation often signals an impending significant breakout, which, if confirmed, could lead to much higher price levels. According to some technical projections, if XRP can break above the upper trendline of this pattern, it could potentially surge to as high as $4.2.
While XRP has underperformed in recent months, these technical developments provide a reason for cautious optimism among traders and investors. A clear breakout above the $0.65-$0.66 resistance level could catalyze a stronger rally.
Furthermore, the price action around the 50-week and 200-week exponential moving averages will be a critical factor in determining whether this bullish scenario plays out. Should the cryptocurrency hold above these moving averages, the likelihood of a sustained upward trend increases significantly.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
