XRP Rally Imminent? Inverse Head & Shoulders Pattern Suggests $3.9 Target
Reason to trust
We adhere to a strict editorial policy that’s all about accuracy, making sure our content is relevant, and staying completely impartial.
Our content is crafted by experts in the industry and then meticulously reviewed to ensure top-notch quality.
We’re committed to the highest standards when it comes to both reporting and publishing news.
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
This article is also available in Spanish.
XRP’s price has seen a dip of 4.7% in the last day, continuing the volatile ride we’ve largely seen throughout March. Despite this recent drop, some are spotting a silver lining. In fact, a well-known analyst has pointed out an interesting reversal pattern that might just swing the momentum back towards a bullish trend.
Related Reading
Inverse Head And Shoulders Pattern Appears On XRP Chart
It looks like XRP has extended its downward trend after starting from $2.47 just recently. To be specific, XRP has fallen by 13.8% in the past three days and now appears to be heading towards potentially breaking below the $2.10 mark.
Crypto analyst Egrag Crypto took to X, the social media platform, to bring attention to what he believes is a “most probably inverse head and shoulders” pattern taking shape on XRP’s daily chart. This pattern, which has been unfolding since the beginning of March, is currently in its final stages of forming the second shoulder. This means we might still see a bit more of a dip in the short term, as XRP could drop again to fully form the second shoulder before we potentially see a breakout rally.
If this inverse head and shoulders pattern is indeed confirmed, it could signal a strong bullish reversal, which would be quite significant given XRP’s recent price pullback. According to Egrag Crypto, if this pattern plays out, we could see a price jump to somewhere between $3.7 and $3.9.
Analyst Says XRP Could Reach All-Time High In 90 To 120 Days
This inverse head and shoulders analysis is part of a wider bullish outlook that suggests XRP’s price might just soar to a new all-time high within the next 90 to 120 days. This exciting prediction, also shared by Egrag Crypto, is rooted in a recurring pattern he’s observed in XRP’s Relative Strength Index (RSI) during past bull markets.
He pointed out that back in the 2017 and 2021 cycles, the RSI indicator for XRP showed two distinct peaks, with the second peak happening roughly 90 to 120 days after the first one. In 2017, the second RSI peak occurred around 120 days after the initial peak. A similar situation played out in 2021, although the time between the first and second RSI highs was a bit shorter, at just 90 days. This historical trend suggests a potentially significant surge could be on the horizon, aligning nicely with a breakout from the currently forming inverse head and shoulders pattern.
So far in the current cycle, XRP has already hit its first RSI peak, reaching a high of 85.17 towards the end of 2024. Since then, the RSI has been in a cooldown phase, dipping down to a low of 65. As of now, the RSI is hovering around 66, and the expectation is for a bounce from here, possibly peaking again around June.
Related Reading
Typically, the RSI goes up when there’s more action in the market, money flowing in, and positive price movements. If this pattern repeats within the next 90 to 120 days, we could see XRP’s RSI peak again around June. Currently, XRP is trading at $2.12, having decreased by 4.7% in the last 24 hours.
Featured image from Gemini Imagen, chart from TradingView
