XRP: Inverse Head-and-Shoulders Breakout to $2.80?

What to Know:

• XRP has broken above the $2.50 resistance level, signaling a potential continuation towards $2.80.
• Technical indicators such as RSI and MACD support the bullish outlook, with increased trading volume confirming strength.
• Whale accumulation and stable open interest suggest genuine buying interest, setting the stage for further gains.

XRP has surged past the $2.50 mark, overcoming a crucial resistance level as trading volumes experienced a notable 31% increase above the weekly average. This positive price action aligns with a broader optimistic sentiment prevailing across cryptocurrency markets, with Bitcoin also showing strength. Traders are now shifting their focus to high-cap tokens that exhibit well-defined technical setups.

The recent surge in XRP’s price follows a period of consolidation between $2.35 and $2.50, with technical analysts closely observing an inverse head-and-shoulders pattern forming since mid-October. The decisive breakthrough at the $2.50 neckline has validated this pattern, potentially paving the way for a continuation towards the $2.65–$2.80 range if buying momentum persists. Improved macro sentiment has contributed to a shift in market positioning.

XRP’s intraday volume peaked at 142 million, representing a 31% increase above its seven-day average, as the price climbed from $2.50 to $2.57. The breakout was characterized by three successive higher lows at $2.44, $2.48, and $2.51, confirming controlled accumulation within the $2.50 zone. XRP maintained its position above the breakout support, even amidst brief profit-taking near $2.58, indicating that institutions were adding to their positions during retests.

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The completion of the inverse head-and-shoulders formation has established a bullish near-term technical bias for XRP. Momentum indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), have both turned upward on the daily chart, while the expansion in volume underscores the strength of the current movement. The immediate resistance level is at $2.60, with secondary targets identified near $2.80; however, failure to maintain $2.50 on a closing basis would negate the bullish structure.

Exchange balance data reveals that XRP reserves have decreased by approximately 3.3% since the beginning of October, which is a historically bullish signal associated with whale accumulation phases. Open interest has stabilized, and funding rates remain neutral, indicating that the move is primarily driven by spot buying. Sustained volume above 130 million throughout the weekend could validate a continuation towards the $2.70–$2.80 range.

As XRP navigates these market dynamics, traders and investors should remain vigilant, closely monitoring key support and resistance levels, volume trends, and regulatory developments. The potential approval of Bitcoin ETFs and further clarity on crypto regulations could introduce new dynamics, influencing market sentiment and investment strategies. With careful analysis and strategic positioning, traders can capitalize on the opportunities presented by XRP’s current trajectory.

Related: XRP Price: $12M Max Pain for Bears

Source: Original article