Is XRP Price Secretly Preparing to Rally to $1?

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As of now in 2024, XRP has lagged the broader crypto market, posting a decline of more than 15% this year, while other assets are up around 20% over the same period.

However, a combination of technical indicators and fractals suggests that XRP price has the potential for a strong recovery in the coming weeks.

XRP Bullish Reversal Setup Hints at 100% Gain

XRP ’s weekly chart is showing signs of a potential bullish reversal, with an inverse head and Vai pattern forming.

The technical configuration includes a left Vai forming from May to December 2022, a top in June 2023 marking the low point, and a right Vai developing from August 2024.

XRP/USD weekly price chart. Source: TradingView.

The important neckline, a downward sloping trendline connecting the Vai and head peaks, is located near the $0.65–$0.66 range.

Based on technical forecasts, a successful breakout above the neckline could send XRP prices to $0.90–$1.00 by 2024, calculated by adding the difference between the neckline and the low of the head (around $0.42) to the breakout point. These upside targets are approximately 100% higher than the current price.

Adding to the potential upside, XRP is trading above its 50-week exponential moving Medium (EMA) (red) and 200-week exponential moving average (EMA) (blue). A decisive rally above these levels would further strengthen the breakout narrative.

However, downside risks remain if XRP price declines after or before testing the neckline as resistance, which coincides with multi-year downtrend line resistance.

Symmetrical Triangle on XRP Monthly Chart

A large symmetrical triangle on the monthly chart is another bullish signal, which, as veteran market analyst Charles Bulkowski notes , often leads to large gains.

If XRP breaks above the upper trendline, it could signal a broader bullish trend. The expected upside can be estimated by taking the height of the triangle at its widest point (the difference between $3.90 and $0.17) and adding it to the breakout level.

XRP/USD monthly price chart. Source: TradingView.

Based on this calculation, an upside breakout from the current level near $0.53 could target $4.20 or higher, as suggested by the Fibonacci extensions marked on the chart. The nearest potential resistance lies at the 0.236-0.382 Fib range or the $0.71-1.05 region, which coincides with IH&S’s bullish reversal target.

The 50-month EMA at $0.526 also Vai as dynamic support. Staying above this level would boost XRP ’s potential to reach $1 by late 2024 or early 2025.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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