What to Know:
- XRP has formed an inverse head-and-shoulders pattern, signaling a potential medium-term bullish reversal.
- A key resistance confluence around $2.7 represents the first decisive test for bulls.
- Ripple appears to be coiling for a decisive move, with volatility compression suggesting an imminent breakout.
Ripple (XRP) is currently consolidating below a critical supply zone after reclaiming the 200-day moving average, indicating a potential shift in market dynamics. Short-term momentum appears constructive, but a confirmed breakout is needed to validate a sustained bullish reversal. Investors are watching closely to see if XRP can overcome this resistance and continue its upward trajectory.
On the daily timeframe, XRP has formed a classic inverse head-and-shoulders pattern, suggesting a possible medium-term reversal from the $2.1–$2.2 institutional demand zone. Following the breakout, the price has reclaimed both the downtrend line and the 200-day MA at $2.6, signaling renewed buying strength and increased investor confidence. This pattern is often seen as a precursor to further gains.
The 4-hour structure shows a bullish breakout from a symmetrical triangle formation, followed by consolidation just below the $2.7 barrier. The price has since retested the $2.5–$2.55 breakout zone, validating it as a new short-term support level. This accumulation structure suggests that as long as XRP holds above this zone, the bias remains tilted to the upside.
A sustained break above $2.7 would confirm momentum continuation, potentially targeting $2.85 and $3.0, while a breakdown below $2.5 would invalidate the immediate bullish setup and expose the $2.3 demand area once again. Investors should monitor these levels closely for potential entry or exit points. The ongoing developments in regulations and the potential for Bitcoin ETFs continue to influence market sentiment.
Overall, Ripple is preparing for a decisive move, with volatility compression suggesting that a breakout in either direction is imminent. Investors and traders should remain vigilant, monitoring key levels and market signals to capitalize on potential opportunities.
Source: Original article
