XRP is beginning to look bullish, and traders are watching as the cryptocurrency forms a potential 1:2 risk-reward on the daily chart. This altcoin has recently been moving hand in hand with BTC, ETH, and SOL, and based on three technical signals, this asset might rally soon.
Since the monumental victory of Ripple with the SEC, XRP has displayed stability by consolidating while maintaining a climb of over 50% in its price. The altcoin was corrected by 15% but has consolidated sideways for nine days. This is building the base of the second shoulder in a reversed Head and Shoulders pattern, one of the more recognizable bullish patterns.
Also Read: XRP Trading Volume Skyrockets by $12 Billion as a Major Price Move Looms
Key Support Levels and Fibonacci Resistance
TradingView’s data highlights that XRP has established robust support around the $0.55 price level. This support level is reinforced by the 0.5 Fibonacci retracement level, aligning with the base of the second shoulder in the developing bullish pattern. The cryptocurrency’s recent price movement, including a 2.12% surge earlier today, suggests that a bullish breakout could be imminent.
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Source: TradingView
The rising momentum came to an end at the 0.618 Fibonacci barrier level. A break over this significant barrier might allow XRP to approach the $0.65 price level, further strengthening the bullish trend.
Furthermore, traders are confident because XRP has shown a remarkable ability to bear pressure within the latest bear market. The altcoin’s price has been trading in a sideways channel, and most market participants are optimistic about another round of a rally bolstered by the regulatory approval that Ripple recently obtained.
Conclusion
XRP’s price action and technical indicators suggest a bullish outlook for the altcoin. As the second shoulder of the reversed Head and Shoulders pattern forms, traders are increasingly optimistic about the potential for a significant price rally. With strong support at the $0.55 level and the prospect of breaking through the 0.618 Fibonacci resistance, XRP remains positioned for a potentially impactful move in the market.
Also Read: XRP Faces Correction as Holders Take Profits Following Recent Gains
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.