- XRP price shows a potential inverse head-and-shoulders in play, suggesting massive gains on the horizon.
- A decisive close above the neckline at $1.46 projects a 35% upswing to $1.98.
- However, a breakdown of $1.22 will result in a failure of the bullish setup and signals the start of a downtrend.
XRP price is consolidating after a recent swing to the upside and indicates more gains are yet to arrive due to the formation of a potentially bullish setup.
XRP price primed for new yearly highs
On the 4-hour chart, XRP price shows the formation of a potential inverse head-and-shoulders pattern. This technical setup contains three distinctive valleys. The one in the middle is typically deeper than the other two and forms the “head.” The slightly lower valleys of almost equal height create the “shoulders.” Hence, the namesake “head and shoulders.”
Connecting the series of highs of these swing lows reveals a resistance barrier known as a “neckline” at $1.46.
If the buyers produce a decisive close above this point, it would signal a breakout and project a 35% upswing, determined by measuring the distance between the horizontal resistance level and the swing low set up by the central valley. Adding this measure to $1.46 yields a target of $1.98.
While the theoretical target stretches 35%, XRP price may make pit stops at the 162% and the 200% Fibonacci extension levels at $1.65 and $1.76, respectively.
XRP/USDT 4-hour chart
If the sellers overwhelm the bulls, leading to a breakdown of $1.22, it will signal the start of a new downtrend for XRP price.
Under these newly evolved conditions, investors can expect the remittance token to slide 5% to $1.16, where it might find support and a resurgence of buyers.
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.
Follow us on Telegram
Stay updated of all the news
Bitcoin likely to remain in red through the next quarter if history is any indication
Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH
Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.
Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter
Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.
Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users
Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.