- XRP price has formed an inverse head-and-shoulders setup, which forecasts a 13% upswing to $0.544.
- The recent breakout is facing headwinds at $0.50 and is currently undergoing a minor pullback.
- A daily candlestick close below $0.471 will invalidate the bullish thesis for Ripple.
XRP price has set up a bullish reversal pattern that is already on its way to reaching its target. However, Bitcoin price is taking a hit due to its correlation with the traditional markets, causing altcoins, including Ripple, to slow down.
XRP price appears bullish
XRP price created an inverse head-and-shoulders pattern between September 25 and October 4. This setup consists of three valleys, with the central one lower than the other two. The one in the middle is the “head,” and the swing lows formed on either side are the “shoulders,” hence the namesake.
The technical formation is a bottom reversal pattern and forecasts a 13% upswing, determined by measuring the distance between the head’s lowest point and the neckline, which is the trend line connecting the peaks of the shoulders. Adding this distance to the breakout point at $0.478 puts the target at $0.544.
XRP price breached the neckline on October 4 and rallied 5.7% but faced headwinds as it approached the $0.50 psychological level. The recent sell-off has pushed the remittance token below a crucial support level at $0.493.
A recovery above the aforementioned level would indicate that the bullish outlook will resume. This development could see XRP price sweep the equal highs formed at $0.508 and $0.519 and extend the run-up to reach its target at $0.544.
XRP/USDT 1-hour chart
Although this setup is bullish, investors should be cautious, and a breakdown of the $0.471 level would create a lower low and invalidate this bullish outlook. In such a case, market participants can expect the XRP price to revisit the $0.45 support level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AI Tokens Price Prediction: Story, Virtuals Protocol rebound following sell-off after US strikes on Iran
Geopolitical tensions in the Middle East caused a liquidation havoc of over $1 billion in the cryptocurrency market over the weekend, following US President Donald Trump’s direct involvement in the conflict between Israel and Iran.
Crypto Today: Bitcoin, Ethereum, XRP flash recovery signals after rollercoaster weekend
The cryptocurrency market is gearing up for recovery following a geopolitical tension-triggered sell-off over the weekend after the United States (US) struck Iran's nuclear sites in support of Israel's campaign.
Quant Price Prediction: Award-winning payment platform eyes bullish reversal
Quant edges higher by 1% so far on Monday, after winning the Best Programmable Payment Platform at the Future of Finance Awards. The optimism surrounding Quant grows in the derivatives market, evident with the QNT Open Interest spike.
Bitcoin Price Forecast: BTC rebounds to $102,000 as MetaPlanet buys the dip, geopolitical fears linger
Bitcoin (BTC) price rebounds slightly, trading around $102,000 at the time of writing on Monday after dipping to $98,200 the previous day. Institutional investors further supported the price recovery as MetaPlanet added 1,111 BTC to its treasury reserve.
Bitcoin Weekly Forecast: The calm before the storm
Bitcoin (BTC) price remains steady above a key support level, trading slightly above $106,000 at the time of writing on Friday. The uncertainty looms as geopolitical tensions between Iran and Israel show no sign yet of an exit strategy from either side.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.