XRP (XRP) has lagged the overall cryptocurrency market so far in 2024, down more than 15% since the start of the year, while all other assets have gained around 20% over the same period.
However, a mix of fractal and technical indicators show that XRP price is likely to see a significant rebound in the coming weeks.
XRP’s bullish reversal setup implies 100% profit.
XRP’s weekly chart is showing signs of a potential bullish reversal, with an inverse head and shoulders pattern forming.
The technical setup features a left shoulder that formed between May and December 2022, a head in June 2023 representing the lowest point, and a right shoulder that has been developing since August 2024.
XRP/USD Weekly Price Chart. Source: TradingView
The important neckline, a downward trend line connecting the shoulder and head highs, is near the $0.65 to $0.66 range.
According to the technical forecast, a successful breakout above the neckline area could see XRP price rise to $0.90 to $1.00 in 2024. This is calculated by adding the difference between the neckline and the low of the head (around $0.42) to the breakout point. This upside target is approximately 100% above the current price level.
In addition to the potential bullish momentum, XRP is trading above the 50-week (red) and 200-week (blue) exponential moving averages (EMA). A decisive rally above these levels would reinforce the breakout story.
However, there remains a downside risk if XRP price declines after or before testing the neckline as resistance. This level coincides with the downtrend resistance for several years.
Symmetrical Triangle on XRP Monthly Chart
On the monthly chart, a large symmetrical triangle is another bullish signal, and as veteran market analyst Charles Bulkowski points out, this often leads to big profits.
If XRP breaks the upper trend line, it could signal a broader bullish trend. The expected uptrend can be estimated by taking the height of the widest point of the triangle (roughly the difference between $3.90 and $0.17, or $3.73) and adding it to the breakout level.
XRP/USD Monthly Price Chart. Source: TradingView
According to this calculation, an upward breakout from the current level of $0.53, as shown by the Fibonacci extensions on the chart, could target $4.20 and above. The nearest potential resistance is the 0.236-0.382 Fibonacci range or the $0.71-1.05 area, which is consistent with the IH&S bullish reversal target.
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The 50-month EMA at $0.526 also acts as a dynamic support level. If this level holds, XRP is likely to reach $1 by late 2024 or early 2025.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.