XRP, the decentralized digital asset designed for high-performance global payments and cross-border remittances, is preparing for a potential bullish move. The 4-hour chart shows that the cryptocurrency is testing its resistance level, eager to break past it in the coming days.
XRP on the verge of a breakout?
In an X post on Thursday, crypto analysis account FOUR shared the following chart, remarking that the digital asset is forming a bullish inverse head and shoulder pattern on the 4-hour timeframe.
To explain, an inverse head and shoulders is a bullish reversal pattern that forms after a downtrend, consisting of three lows where the middle low – the head – is deeper than the two surrounding lows – the shoulders.
A breakout above the neckline – the resistance connecting the highs between the shoulders – can signal a potential trend reversal and further upside momentum. In the aforementioned chart, it can be seen that XRP is continuing to create higher lows, coiling for a major breakout.
Fellow crypto analyst Crypto Coral shared a similar outlook on XRP. The analyst shared the following daily chart, adding that the digital asset is currently compressing within a falling triangle, with price reacting from a support zone around $1.05.
For the uninitiated, a large triangle formation is a consolidation pattern where price moves between converging support and resistance levels – signaling a buildup of pressure before a potential breakout or breakdown.
In Crypto Coral’s chart, if there is volume confirmation at resistance level then it can quickly lead to a massive price expansion.
XRP at historical oversold level
In a separate analysis, crypto trader Cryptollica remarked that XRP is currently sitting at the lowest oversold level in its 13-year long history. The analyst added:
“Price is now testing the longterm structure while RSI is deeper than every major XRP reset before it. This is not where the crowd gets excited. This is where most gives up before the real move begins.”
While there’s no consensus among analysts as to where XRP might be headed in the short-term, latest exchange data from Coinbase and Binance does lean slightly bullish.
Still, bearish momentum continues to build underneath. According to data published on June 29, a weak XRP Taker Buy/Sell ratio threatens the cryptocurrency’s descent below the psychologically important $1 support level.
