Is XRP price quietly setting up for a rally toward $1?
2024.09.07 13:11
XRP (XRP) has lagged behind the broader cryptocurrency market so far in 2024, posting a year-to-date decline of over 15%, while other assets together have gained around 20% during the same period.
However, a mix of fractal and technical indicators shows potential for a great XRP price rebound in the coming weeks.
XRP’s bullish reversal setup hints at 100% gains
XRP’s weekly chart is showing signs of a potential bullish reversal, with an inverse head and shoulders pattern taking shape.
The technical setup features a left shoulder that formed between May and December 2022, a head in June 2023, marking the lowest point, and a right shoulder that has been developing since August 2024.
XRP/USD weekly price chart. Source: TradingView
The critical neckline, a downward-sloping trendline connecting the highs of the shoulders and head, sits near the $0.65–$0.66 range.
Based on technical projections, a successful breakout above the neckline area could see XRP prices rallying toward $0.90 to $1.00 in 2024, calculated by adding the difference between the neckline and the head’s low (approximately $0.42) to the breakout point. These upside targets are approximately 100% above the current price levels.
Adding to the potential bullish momentum, XRP is trading above its 50-week (red) and 200-week (blue) exponential moving average (EMA). A decisive rally above these levels would strengthen the breakout narrative.
However, downside risks remain if XRP’s price retreats after or before testing the neckline as resistance. This level coincides with a multi-year descending trendline resistance.
Symmetrical triangle on XRP monthly chart
A big symmetrical triangle on its month chart is another bullish cue, 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 projected upside can be estimated by taking the triangle’s height at its widest point (roughly the difference between $3.90 and $0.17, or $3.73) and adding that to the breakout level.
XRP/USD monthly price chart. Source: TradingView
Based on this calculation, an upward 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 is at the 0.236-0.382 Fib range, or the $0.71-1.05 area, coinciding with the IH&S bullish reversal target.
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The 50-month EMA at $0.526 also acts as a dynamic support. Staying above this level furthers XRP’s potential to reach $1 by the end of 2024 or early 2025.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
