• The XRP price approaches the neckline of an inverse hand-and-shoulders pattern.
  • A strong close above the neckline at $0.63 projects a 73% bull rally to $1.09.
  • If sellers prevent this scenario from evolving, a reversal in Ripple’s bullish momentum could occur.

The XRP price is on the verge of flipping a resistance into support which could trigger a massive bull run.

XRP price eyes higher high

The XRP price action from late November 2018 to date has formed an inverse head-and-shoulders. This pattern is a bottom reversal pattern, and a successful breakout hints at the start of a new uptrend.

The technical formation contains three valleys, with the center one forming the head and the ones at the extremes are known as shoulders. While the shoulders are of comparable depths, the head extends far lower.

The peaks of these valleys are all connected at the neckline. In Ripple’s case, it is a horizontal resistance level at $0.63. This setup’s target at $1.09 is determined by measuring the head’s depth from the right shoulder and adding it to the breakout point at $0.63.

At the time of writing, the XRP price pierced through the horizontal supply barrier but hasn’t closed above it yet.

XRP/USDT 1-day chart

XRP/USDT 1-day chart

Supporting this bullish outlook are the addresses that have been on an accumulation spree since January. Whale addresses holding between 100,000 to 1,000,000 XRP and 1,000,000 to 10,000,000 XRP have increased by 6.17% and 5.85% in that order.

This move represents that investors are optimistic about the XRP price and believe that it will appreciate shortly.

 

XRP whale holder distribution chart

Santiment’s MVRV model for Ripple price shows that it is hovering around 14%, suggesting that not many addresses are in profit. Therefore, these market participants might not be inclined to sell any time soon.

In early February, the 30-day MVRV model was hovering around the same level and was followed by a 45% surge in the XRP price.

XRP MVRV 30-day chart

XRP MVRV 30-day chart

All in all, the XRP price looks primed for a bull run. However, this upward move is dependent on bulls’ potential to produce a decisive daily candlestick close above the neckline at $0.63. Failing to do so might result in a reversal of the bullish momentum.

In that case, the Ripple price could drop 16% toward the 61.8% Fibonacci retracement level at $0.53. If the sellers aren’t contained here, the pullback could extend toward the shoulder’s bottom at $0.46 or the 50% Fibonacci retracement level. A breach below this barrier will invalidate the inverse head-and-shoulders pattern and open the path for bears to rampage.


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ethereum price recovers slightly as whales begin accumulation spree

Ethereum price recovers slightly as whales begin accumulation spree

Ethereum showed signs of recovering its bullish momentum on Thursday, briefly rising to $3,618 as whales entered a buying spree. Despite the movement from whales, the US Securities and Exchange Commission Wells notice to Uniswap could affect Ethereum in the long run.

More Ethereum News

Solana borrowing and lending platform MarginFi sees massive withdrawal after CEO resignation

Solana borrowing and lending platform MarginFi sees massive withdrawal after CEO resignation

MarginFi saw more than $260 million leave its platform into other competing Solana platforms on Thursday. This follows controversial accusations from staking protocol SolBlaze and CEO Edgar Pavlovsky's resignation.

More Solana News

Doge contributor warns of extreme volatility amid Coinbase listing of DOGE and PEPE futures products

Doge contributor warns of extreme volatility amid Coinbase listing of DOGE and PEPE futures products

A Dogecoin contributor warned the DOGE community on Thursday to desist from derivatives trading due to the high volatility that may occur as the Bitcoin halving approaches. The warning comes as Coinbase is set to begin trading the Dogecoin futures contract after gaining approval from the CFTC.

More Dogecoin News

SEC quietly investigated and closed case against altcoin FLOW founder Dapper Labs in September

SEC quietly investigated and closed case against altcoin FLOW founder Dapper Labs in September

Flow cryptocurrency received attention on Monday after Fortune obtained a document revealing the Securities & Exchange Commission closed an investigation on its founding company, Dapper Labs, which is also responsible for developing NBA Top Shot and Crypto Kitties NFTs.

More Cryptocurrencies News

Bitcoin: Short-term holders add 1.12 million BTC, what does this mean?

Bitcoin: Short-term holders add 1.12 million BTC, what does this mean?

Bitcoin (BTC) price action for the past three weeks has been confusing for sidelined participants. On the one hand, investors are ignoring BTC and trading altcoins, and on the other hand, traders are expecting a potential dip.

Read full analysis

BTC

ETH

XRP