This week, cryptocurrency XRP is showing significant recovery, leading many altcoins and forming a Bump-and-Run Reversal (BARR) pattern, which can signal a reversal and the beginning of an uptrend.
Formation of the BARR Pattern in XRP
In recent days, XRP has risen by over 11%, forming a Bump-and-Run Reversal (BARR) pattern, often signaling the end of a downtrend. On the daily chart, several key phases of the pattern can be identified: the 'Lead-in Phase', with a significant correction after the January 16 high of $3.45; the 'Bump Phase', marked by a recovery to $2.72; and 'Breakout & Throwback', where the price is testing the descending trendline.
Technical Analysis and Analysts' Opinion
The renowned crypto analyst @Steph_iscrypto noted that XRP has reclaimed the EMA ribbon on the daily timeframe, historically associated with significant upward movements. This happened alongside the MACD histogram turning green, highlighting a shift towards bullish sentiment.
Target Level at $4: Is Such a Rise Possible?
If the BARR pattern plays out, XRP could reach the psychologically significant level of $4, marking a 46% increase from current levels. Technical indicators support a possible breakout: MACD signals a trend shift, and the EMA ribbons provide additional confirmation.
The potential for XRP to rise to $4 with a successful breakout per the BARR pattern looks promising, though traders should confirm trend resumption before taking major positions. Charts and indicators point to possible positive changes.
