After a period of underperformance, the popular cryptocurrency XRP is forming a technical setup that could drive its price up to $1 in the near future.
Current Market Situation
XRP 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%.
XRP Technical Analysis
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. 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.
Long-term Forecasts
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. 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.
Considering current technical setups and long-term forecasts, XRP has the potential for significant growth in the near future.
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