With a triangle breakout run, XRP prepares for an inverted head and shoulder pattern in the daily chart. Will the XRP price hit $1 as the buying pressure shoots up?
Amid the broader market recovery, XRP finds a massive demand inflow as investor confidence builds up. Having surpassed the $0.60 mark, XRP gives buy signal in multiple timeframes. Will this sudden increase in demand skyrocket XRP to $1?
Early Bullish Signals with Triangle Break For XRP
In the 4-hour chart, XRP continues its bullish trend after a minor slump. Further, the recent failure of the V-shaped reversal to surpass $0.62 led to a pullback to $0.55. This pullback phase established a strong resistance trendline, forming a triangle pattern.
During the consolidation near the support trendline, a surge in momentum became evident through a bullish divergence in the RSI. Further, the XRP recovery has now broken above the overhead resistance trendline.
In the 4-hour chart, a golden crossover between the 50 and 200 SMAs further supports the bullish sentiment. Additionally, the price has surpassed the 78.60% Fibonacci level at the psychological resistance of $0.60, currently trading at $0.60935.
Second Breakout Stage For XRP
In the daily chart, the bullish reversal forms a potential inverted head-and-shoulder pattern, with the neckline at $0.62, below the 78.60% Fibonacci level at $0.64. The actual breakout trade for price action traders would occur with a break above $0.64.
The daily chart also shows two consecutive bullish candles, with a 6.29% jump overnight and an additional 1.74% intraday gain.
Furthermore, the 50 and 200 SMAs are on the verge of a bullish crossover, while the MACD indicator shows a similar positive crossover, indicating increasing bullish pressure.
Rising XRPL Open Interest Bounces Off of $400M
In the derivatives market, XRP open interest has shown a consistent reversal between $350 to $400 million. Recently, open interest has increased overnight from $400 million to $415 million, now sitting at $469 million.
This rise in open interest, alongside surging XRP prices, strengthens the likelihood of a bullish trend pushing the price towards the $1 mark.
Will XRP Hit $1?
A breakout above the $0.64 resistance level could push XRP towards $0.72, potentially reaching a new all-time high. Optimistically, the Fibonacci levels suggest a target at the 1.618% Fibonacci level, around the psychological $1 mark.
On the downside, a bearish reversal could invalidate the inverted head-and-shoulder pattern, pushing the price down to $0.55 or the 50% Fibonacci level. Further, the next support levels are at the 23.60% Fibonacci level at $0.4771 and the 0% baseline at $0.41965.
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.
