Prices of XRP have taken a heavy hit in the past week as the altcoin struggled to find a local bottom. During this period, XRP lost 10.51% of its value and traded to as low as $2.06. Amid this bleeding market, popular technical analyst Egrag Crypto has hinted at a potential bullish reversal hinged on certain conditions.
Inverse Head & Shoulders Pattern Signals Bullish Potential For XRP – Levels To Watch
In an X post on March 29, Egrag Crypto provided a positive outlook on the XRP market despite an ongoing downtrend. According to the analyst, a developing inverse head and shoulder pattern indicates the fourth largest cryptocurrency could soon experience a breakout.
The inverse head and shoulders formation is a common bullish reversal pattern signaling an impending shift from a downtrend to an uptrend. As seen in the chart below, It consists of a temporary price low (left shoulder) followed by a rebound, a deeper low (head) that marks the bottom, and another rebound leading to a higher low (right shoulder) compared to the head.
Notably, Egrag warns that this bullish pattern on the XRP daily chart is certainly valid until April 20, 2025. Furthermore, market bulls must avoid a daily close below $2 to retain the viability of this positive setup. However, a bullish rebound will only be confirmed following a decisive price surge above $2.65 which represents the neckline of the inverse head and shoulders pattern.
Thereafter, XRP would likely experience some substantial resistance at the $3.00 price zone. Moving past this barrier should propel a rise to around $3.20-$3.40, a close above which is described as a critical step sustaining this potential uptrend.
The Price Targets
According to Egrag, a breakout from the current bullish setup should result in XRP reaching a conservative price target of $3.70-$3.90 and establishing a new all-time high. However, the prominent altcoin could rise further to around $4.60. At this level, the crypto analyst explains price weakness could set in suggesting an incoming distribution among investors and potential price correction.
At the time of writing, XRP trades at $2.18 reflecting a minor gain of 0.91% in the past day. Meanwhile, the asset’s daily trading volume has declined by 10.28% indicating a potential waning of selling pressure and eventual price stability. Meanwhile, the US Securities and Exchange Commission is expected to terminate its 4-year long case against Ripple in May lifting a heavy regulatory cloud over XRP.