XRP has been trailing behind the broader cryptocurrency market in 2024, with a decline of over 15% year-to-date. However, recent technical indicators suggest a potential bullish reversal, with XRP possibly setting up for a significant rally.
On XRP's weekly chart, an inverse head-and-shoulders pattern is emerging. This pattern features a left shoulder from May to December 2022, a head in June 2023, and a right shoulder developing since August 2024. The critical neckline, situated between $0.65 and $0.66, is pivotal for predicting future movements.
A breakout above this neckline could see XRP prices surge towards $0.90 to $1.00, representing an approximate 100% increase from current levels. Additionally, XRP is trading above its 50-week and 200-week exponential moving averages (EMAs), which supports the bullish outlook.
Despite the bullish signs, there are risks if XRP's price fails to sustain above the neckline or retreats before reaching this level. The monthly chart also reveals a symmetrical triangle pattern, suggesting a broader bullish trend if broken above. A breakout could push XRP towards $4.20, with initial resistance around $0.71 to $1.05.
The 50-month EMA at $0.526 serves as dynamic support. Maintaining this level could bolster XRP’s chances of reaching $1 by the end of 2024 or early 2025.
