XRP’s price action has taken a decisively bullish turn, with the cryptocurrency surging past critical resistance levels and setting up for what could be a significant rally ahead. Recent data showing a 41% surge in XRP open interest to $3.4B adds further credence to this bullish outlook.
Technical Breakout Confirms Bullish Pattern
Veteran wave technician BigMike7335 has identified a textbook reversal pattern on XRP’s daily chart, with the token completing an inverted head-and-shoulders formation. The cryptocurrency has posted an impressive 21% gain over the past week, decisively breaking through the $2.40 neckline that had served as resistance for six months.
Multiple Technical Indicators Align
The breakout is supported by several technical factors:
- Price action above all major moving averages (50, 100, and 200-day)
- RSI showing strong momentum without reaching overbought territory
- Stochastic oscillator confirming genuine buying pressure
- Volume profile showing cleared resistance zones
Price Target and Risk Levels
The measured move projects a target of $3.57, representing a 40% upside from current levels. Key support sits at $1.66, with the analyst noting this level as crucial for maintaining the bullish thesis.
FAQ
What is driving XRP’s current price surge?
The surge is primarily technical, driven by the completion of an inverted head-and-shoulders pattern and increased institutional interest, as evidenced by the surge in open interest.
What are the key resistance levels ahead?
The next major resistance lies at $2.80, followed by the psychological $3.00 level before the projected target of $3.57.
What could invalidate this bullish scenario?
A break below the critical support at $1.66 would invalidate the current bullish setup and potentially signal a trend reversal.
At press time, XRP trades at $2.60, maintaining its position above key moving averages and setting up for what could be a significant move toward the projected target of $3.57.