XRP, the native token of Ripple, is showing promising signs of a potential price surge based on recent technical analysis. An inverse head-and-shoulders pattern, a bullish reversal formation, is emerging on the weekly chart, suggesting a possible rally towards $1.

While XRP has underperformed the broader cryptocurrency market in 2024, a combination of fractal and technical indicators point to a strong rebound in the coming weeks.

Inverse Head-and-Shoulders Pattern Indicates Bullish Momentum

The inverse head-and-shoulders pattern on XRP’s weekly chart consists of a left shoulder, a head (the lowest point), and a right shoulder. The neckline, a downward-sloping trendline connecting the highs of these formations, is currently near the $0.65-$0.66 range.

A successful breakout above the neckline could propel XRP prices towards $0.90 to $1.00 in 2024. This target is calculated by adding the difference between the neckline and the head’s low to the breakout point.

Supporting Factors:

• EMA Support: XRP is trading above its 50-week and 200-week exponential moving averages (EMAs), indicating a strong uptrend.
• Symmetrical Triangle: A symmetrical triangle on the monthly chart, a bullish formation often associated with significant price gains, further supports the upside potential.

Potential Downside Risks

While the technical outlook for XRP is positive, there are downside risks if the price fails to break above the neckline or retreats after testing it as resistance. The neckline coincides with a multi-year descending trendline resistance.

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Target Price: $4.20 or Higher

If XRP breaks above the upper trendline of the symmetrical triangle on the monthly chart, the projected upside could be significant. Based on Fibonacci extensions, the target price could be as high as $4.20 or more.

In conclusion, XRP’s technical analysis suggests a strong potential for a rally towards $1 in the near future. However, investors should always conduct thorough research and consider their risk tolerance before making any investment decisions.