XRP’s price action is showing strong bullish momentum as a critical technical pattern emerges, pointing to a potential 20% surge in the near term. Technical analyst TehThomas has identified a Golden Pocket formation that could propel XRP towards the $2.90 mark, representing a significant opportunity for traders.
This analysis comes at an interesting time, following recent warnings about XRP needing to break $3.00 to invalidate bearish patterns. The current technical setup suggests this critical level may soon be tested.
Golden Pocket Formation Signals Bullish Momentum
The cryptocurrency is currently trading within a well-defined Ascending Channel pattern, with the Golden Pocket formation appearing between the 0.618 – 0.65 Fibonacci retracement levels. This technical confluence presents a strong case for continued upward momentum.
Key Technical Levels to Watch
- Current Price: $2.20
- Immediate Resistance: $2.50
- Target Range: $2.80 – $2.90
- Critical Support: 0.618 Fibonacci level
Short-term Risks and Considerations
While the overall outlook remains bullish, traders should note potential short-term resistance at the current imbalance zone. A rejection at this level could trigger a temporary pullback before the next leg up. The 1-hour timeframe shows increasing selling pressure that needs to be monitored.
Trading Strategy and Risk Management
For traders looking to capitalize on this setup, key entry points align with the Golden Pocket support zone. Stop losses should be placed below the lower boundary of the Ascending Channel to protect against potential bearish reversals.
Frequently Asked Questions
What is a Golden Pocket in technical analysis?
A Golden Pocket is a specific Fibonacci retracement zone between the 0.618 and 0.65 levels, often considered a strong support/resistance area for price action.
How reliable is the current XRP price pattern?
The pattern shows historical reliability with two previous successful reactions from this level, suggesting strong buyer support.
What could invalidate this bullish scenario?
A break below the Ascending Channel support or failure to hold the Golden Pocket level could invalidate the bullish outlook.