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HomeCrypto NewsMarketExpert Sets $0.70 XRP Target on H&S Formation, With Potential Future Targets of $70

Expert Sets $0.70 XRP Target on H&S Formation, With Potential Future Targets of $70

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Market analyst EGRAG recently set an XRP target of $0.70 on the back of a possible formation of an inverse head and shoulders (H&S) pattern on the 4-hour timeframe.

In his recent analysis, EGRAG called his audience’s attention to a descending channel that has plagued XRP since Nov. 6. XRP broke above the descending channel during its latest rally on Nov. 23, as it surged above the $0.62 mark.

However, EGRAG emphasized that this breakout could actually be a fakeout, in which case the budding bullish sentiments might be misplaced. Nonetheless, he stressed that if the breakout is not a fakeout, XRP could still drop from its current position to retest the upper trendline of the descending channel.

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Interestingly, EGRAG sees this drop to retest the upper trendline as a bullish move. He pointed out that the asset is looking to form the inverse head and shoulders pattern on the 4-hour timeframe. 

The Inverse H&S Pattern

The inverse head and shoulders pattern is a bullish reversal formation with three lows – a lower low (head) between two higher lows (shoulders). It typically signals a potential shift from a downtrend to an uptrend, with a breakout above the neckline serving as confirmation of the shift.

Notably, XRP formed the left shoulder when it dropped to a low of $0.5860 on Nov. 17. The asset then formed the head upon the collapse to $0.5700 on Nov. 21. Following a recovery from this collapse, which resulted in a breakout from the descending channel, EGRAG believes another drop is imminent.

XRP HS Formation
XRP HS Formation | EGRAG Crypto

This drop would serve two purposes: it would cause XRP to retest the descending channel and it would result in the formation of the right shoulder in the inverse H&S formation. 

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Once the retest and the right shoulder formation are complete, EGRAG’s chart presents a target of $0.70 for when XRP stages a recovery. However, to recover the $0.70 territory, XRP would need to conquer and break above the elusive resistance point at $0.66

XRP Eyes $0.70 in Short Term

XRP is currently trading for $0.6199, having recently relinquished the $0.62 territory. The last time XRP saw the $0.70 zone was on Nov. 6. EGRAG noted that XRP would be setting its sights on loftier price targets, including $70 and $700 in the future.

In a separate analysis, the analyst further highlighted XRP’s movements relative to a pre-set trajectory. EGRAG first presented this trajectory on Nov. 14 using a dotted green line.

XRP Green Dotted Line EGRAG Crypto
XRP Green Dotted Line | EGRAG Crypto

Notably, the trajectory features a path to the $0.52 territory, and then a subsequent rebound that would see XRP surge above the $0.70 mark.

However, in an update to this report, the analyst confirmed that XRP is now looking to invalidate this pre-set path. 

This contrasting move could see XRP skyrocket without dropping below the $0.52 zone. EGRAG noted that this invalidation would be confirmed if XRP register closes above $0.6289. The analyst has drawn a red line at this price point, representing a resistance zone.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Author

Sam Wisdom Raphael
Sam Wisdom Raphael
Sam Wisdom Raphael is a seasoned crypto news writer and journalist with 5 years of experience covering blockchain, DeFi, and crypto developments. Sam's active presence in the crypto community complements his deep understanding of the crypto space, allowing him to craft comprehensible price analysis reports and tackle technical blockchain concepts.

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