XRP (XRP) has underperformed compared to the broader cryptocurrency market in 2024, posting a year-to-date decline of over 15%, while other digital assets have gained around 20% during the same period. However, recent technical indicators suggest that XRP may be gearing up for a significant rebound in the coming weeks.
Inverse Head-and-Shoulders Pattern Hints at 100% Gains
On the XRP weekly chart, an inverse head-and-shoulders pattern has been taking shape, a classic bullish reversal setup. This pattern features a left shoulder formed between May and December 2022, a head marked by June 2023 low, and a right shoulder developing since August 2024.
XRP/USD weekly price chart. Source: TradingView
The key level to watch is the neckline of this pattern, a downward-sloping trendline that connects the highs of the shoulders and the head. This neckline sits in the $0.65–$0.66 range. A successful breakout above this area could potentially push XRP towards the $0.90 to $1.00 range, calculated by adding the difference between the neckline and the head’s low (around $0.42) to the breakout point. This would represent a 100% gain from current levels.
Adding to the bullish outlook, XRP is currently trading above both its 50-week and 200-week exponential moving averages (EMA). A decisive rally above these levels could further validate the bullish narrative.
Symmetrical Triangle on Monthly Chart
XRP’s monthly chart also shows a bullish signal with the formation of a symmetrical triangle. Market analyst Charles Bulkowski notes that symmetrical triangles often lead to significant price gains.
XRP/USD monthly price chart. Source: TradingView
If XRP manages to break above the upper trendline of the triangle, it could trigger a broader bullish trend. The potential upside could be as high as $4.20, based on the triangle’s height and Fibonacci extensions. Immediate resistance levels are seen in the $0.71–$1.05 range, which coincides with the bullish reversal target.
With dynamic support from the 50-month EMA at $0.526, XRP’s prospects for reaching $1 by late 2024 or early 2025 remain strong, provided it can maintain this support level.
