- XRP price action has produced a potential inverse head-and-shoulders setup.
- This technical formation forecasts a 60% upswing to $1.234.
- Invalidation of the bullish thesis will occur if Ripple breaks below the last key swing low of $0.475.
Ripple (XRP) price is in a multi-month consolidative pattern that could provide patient holders with handsome gains. The head-and-shoulders setup (a bullish variety) is almost close to being complete. If the XRP price continues to scale higher and produce a breakout, it could trigger a swift rally to the upside.
Also read: Ripple plans to be the torchbearer of the potential $300 trillion cross-border payment industry
XRP price promises massive gains
XRP price action from March 2022 to November 2023 has produced an inverse head-and-shoulders setup. This technical formation contains three distinctive swing lows, with the central one deeper than the other two. This swing low is termed the head, and the swing lows on either side of the head are usually of comparable depths and are named shoulders. Hence, the namesake.
Connecting the peaks of these three swing lows with a trend line shows a resistance level known as the neckline. A breakout from this setup, which includes a decisive close above the neckline, forecasts a near-60% rally to $1.234. The target is obtained by measuring the distance between the head’s right peak and the lowest point and adding this measure to the breakout point.
In Ripple’s case, the breakout could occur around $0.774.
Beyond the neckline, XRP price will face a critical hurdle at $0.947, clearing which would open the path for Ripple bulls to retest the $1.234 target. Ripple currently trades at $0.606, which makes the retest of $1.234 a 103% move.
XRP/USDT 3-day chart
While the forecasted targets might seem overwhelming, the recent buying pressure and bullish momentum have pushed major altcoins to double in the past few weeks. This outlook for XRP price has a higher chance of occurring if Bitcoin price does not collapse.
On the other hand, if XRP price produces a lower low below the key swing low of $0.475, it will invalidate the bullish thesis. In such a case, Ripple could slide 13% and revisit the $0.413 support floor.
Read more: XRP price might be looking at a decline even as speculation of Ripple and SEC settling intensify
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Metaplanet raises $10M to buy BTC, ETH price moves below $1,600 as Tron gains signals panic
The cryptocurrency aggregate market capitalization stabilized around $2.7 trillion on Wednesday, with Bitcoin’s $84,000 support momentarily anchoring the market against external bearish discourses.
Chainlink active addresses drop as whale selling spikes, could LINK crash below $10?
Chainlink active addresses slide dramatically to 3,200 from February’s peak of 9,400. The downtrend in network activity coincides with increasing selling activity among whales with between 10 million and 100 million LINK.
Bitcoin stabilizes around $83,000 as China opens trade talks with President Trump’s administration
Bitcoin is stabilizing around $83,500 at the time of writing on Wednesday after facing multiple rejections around the 200-day EMA at $85,000 since Saturday. A breakout of this strong level would indicate a bullish trend ahead.
Binance Chain completes $914M BNB token burn, hinting at a potential rally
Binance Chain has finalized its programmed 31st quarterly BNB token burn, potentially setting the stage for the world’s fifth-largest cryptocurrency, with a market capitalization of $81.45 billion, to rally in the coming weeks.
Bitcoin Weekly Forecast: Market uncertainty lingers, Trump’s 90-day tariff pause sparks modest recovery
Bitcoin (BTC) price extends recovery to around $82,500 on Friday after dumping to a new year-to-date low of $74,508 to start the week. Market uncertainty remains high, leading to a massive shakeout, with total liquidations hitting $2.18 billion across crypto markets.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.