XRP may be heading for a new level as it forms an inverse head and shoulders pattern. This is one of the reliable signals for a bullish market, according to analysts.
Technical Analysis: Reversal Pattern
Analyst Ali Martinez noted that XRP is forming an inverse head and shoulders pattern, which typically indicates a potential shift from a bearish to a bullish trend. This pattern includes three lows: the left shoulder, the head (a deeper low), and the right shoulder, followed by a breakout above the neckline. A confirmed break above this neckline often leads to a strong upward rally. Currently, XRP's neckline hovers just above $2.30.
Supporting Technical Indicators
Besides the head and shoulders pattern, other key technical signals also indicate bullish potential for XRP. Notably, XRP recently closed a weekly candle above its 20-week moving average, an important trend-reversal signal. The Relative Strength Index (RSI) remains in healthy territory, suggesting that the asset is not yet overbought and has room to climb. Trading volume has begun to increase as well, which is essential for validating a breakout.
Overall Positive Market Sentiment
XRP's market sentiment has become increasingly positive. Following the breach of the $2.33 resistance level, XRP is regaining investor confidence. This surge in optimism followed XRP's strongest quarterly candle close in history and growing institutional interest tied to Ripple's expanding role in cross-border finance.
XRP is under the watchful eye of analysts and traders who are anticipating a possible breakout towards $2.60, provided volume confirms this movement. The current $2.30–$2.35 zone will be crucial in determining XRP's next move.
