XRP is on the verge of completing a bullish head and shoulders (H&S) pattern, which could set the stage for an impressive price movement.
A recent analysis from market commentator Steph confirms that an inverted head and shoulders (H&S) formation has nearly taken shape on the daily chart. This pattern is a strong bullish reversal indicator, and if confirmed, XRP could aim for a rally above $1 in the short term.
Head and Shoulders Formation
Notably, market data reveals that the left shoulder in this pattern began forming in late 2023. Specifically, XRP experienced a significant decline from its $0.70 peak in December 2023, collapsing to a low of $0.4855 in January 2024.
Following this drop, XRP recorded a sharp recovery campaign that pushed it to $0.7449 by March 2024. This recovery came on the back of the broader market uptrend, as Bitcoin (BTC) crossed $73K to reach a new ATH. XRP’s surge to $0.7449 completed the formation of the left shoulder.
However, the broader market corrected, with XRP witnessing a sharp drop. The retracement pushed XRP back down, reaching a low of $0.3824 in July 2024, setting the stage for the head. As XRP recovered from this low to hit $0.6580 on July 31, it completely formed the head.
Interestingly, since then, the right shoulder has been in progress amid the drop from the $0.6580 high. XRP recently fell $0.5026 on Sept. 6, forming the base of the right shoulder.
Currently, XRP is trading at $0.5787. Steph stressed that the right shoulder will be confirmed if XRP manages to continue its upward trajectory and breaches the neckline of the H&S pattern, which stands at $0.6580.
Should this breakout occur, the market analyst believes XRP could quickly rise to breach $1 in a short time frame. Steph sets an initial target of $1.10. For context, the last time XRP saw the $1 level was in December 2021.
XRP Bollinger Bands and RSI Indications
In addition to the inverted H&S pattern, the Bollinger Bands and Relative Strength Index (RSI) provide supporting data for a potential bullish scenario.
On the daily chart, XRP is trading slightly above the middle Bollinger Band (20-day moving average) at $0.5574. This setup suggests that despite the ongoing market uncertainty, buyers remain in control.
Meanwhile, the lower Bollinger Band, which stands at $0.5156, has provided solid support in recent declines. However, the upper band at $0.5993 is acting as a near-term resistance.
If XRP can breach this upper Bollinger Band level, the bulls are likely to gather enough momentum to test the neckline resistance of $0.65. The breakout of the neckline would then trigger a potential run towards $1.10, as indicated by the H&S formation.
Meanwhile, the RSI reading is currently at 54.01, with the signal line at 48.03. An RSI above 50 generally signals positive momentum, indicating that XRP still has room to rise in the near term.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
