- XRP forms a bullish inverse head and shoulders pattern, signaling a potential trend reversal.
- Breakout above the $2.33 neckline could ignite a 15% surge, targeting the $2.64 level.
- Fibonacci extensions back the price targets, with traders watching volume for confirmation.
XRP traders are closely monitoring a potential price surge following a new technical chart analysis. According to crypto analyst Ali, the XRP/USDT pair on Binance is forming a classic inverse head and shoulders pattern on the 4-hour timeframe.
The structure is widely viewed as a bullish reversal signal, and its completion could lead to a 15 percent breakout. By the time of the analysis, XRP was exchanging hands around the mark of $2,29 and had recorded a modest upsurge of 0.41 percent. The pattern formed a neckline around the level of $2.33; this is now the most important level in terms of breakout.
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According to recent price activity, XRP dropped to around $1.90, which formed the head of the pattern. Since then, the asset has recovered and formed a series of new highs.
The right shoulder has been constructed slowly, preparing the groundwork for potential upside in case the neckline is to be broken.
These Fibonacci extensions shown in Ali’s chart are critical levels for the expected move to be magnified. Once it breaks out above $2.33, it could go to just over $2.47 or to about $2.54 and $2.64.
The Fibonacci extension turned out to be at the level of 1.618, or precisely 2.64, which complements Ali’s primary goal and provides a potential 15 percent profit from the point at which it broke out.
Source: Ali-Chart
Key Technical Setup Signals Rising Bullish Momentum
The presence of multiple Fibonacci extensions strengthens the bullish case for XRP. After $2.64, the next resistance may appear at $2.74, representing the 1.786 extension level. Analysts feel that there should be prolonged support in terms of buying pressure and volume to confirm the move.
Nevertheless, if XRP does not close above the neckline, it may lose strength, and it may take some time before gains are earned. As the trend nears its ending stage, traders are paying close attention to momentum indicators and resistance responses.
XRP is still in a larger recovery trend, and the current structure can add further momentum to this move if it is confirmed. All eyes are now on the 2.33 neckline to determine the next short-term price action.
Ali’s analysis highlights a possible bullish reversal in XRP’s trend, with $2.33 acting as the breakout line. A clean move above this resistance could open the door for a rally toward $2.64, reinforcing bullish sentiment in the market.
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