A crypto analyst has identified a technical pattern on the XRP chart that could signal an impending trend reversal. After months of decline, the cryptocurrency is at a crucial point, where two specific price levels could determine its trajectory for the rest of the year.
In Short #
- An analyst flags a technical pattern indicating a potential major trend reversal for XRP’s price.
- A rise to $2.50 is possible if the price breaks a key hurdle at $2.22.
- If the price drops below $2, a further decline is expected before the end of the year.
Technical Signals Point to Potential Reversal #
The analysis, by an analyst known as Dom on social media platform X, focuses on XRP’s price action over the last six weeks. According to Dom, an inverted chart of this period reveals a “perfect 3 drive pattern.”
Analysts sometimes use inverted charts in their analysis. The human brain prefers to see rising lines rather than falling ones. By flipping the chart, you trick your brain, allowing you to look purely at the pattern’s shape without emotional bias.
“$XRP update If you inverse the chart over the last 6 weeks, you’ll see a perfect 3 drive pattern, a very accurate reversal setup in crypto We can see a HL has finally formed which can hint at the first sign of a trend change developing Bulls needs to regain the monthly rVWAP…”
— Dom (@traderview2)
This pattern is seen in the crypto world as a signal for a potential price reversal. The analyst also points to the formation of a higher low. This technical signal means the recent price low is higher than the previous one, which can indicate a weakening downtrend.
Two Crucial Scenarios for XRP #
In dollar terms, the XRP price is currently trading around $2.16. A positive trend break depends on reclaiming the price level of approximately $2.22. This level, identified by the analyst as the ‘monthly rVWAP’, is an important volume-weighted average price followed by many traders.
A breakout above this level could, according to the analysis, pave the way for a rise towards $2.50.
According to Dom, the order books are “empty,” which implies that a breakout could lead to a rapid price movement, suggesting now is the time for the trend to reverse.
If the breakout fails, the critical lower bound lies at $2. This level acts as a key support zone for the price. Should the price drop below this level and consolidate there, the “end of the year could get ugly,” the analyst warns.
XRP Price Sees Rise This Week #
Dom’s analysis comes at a time when XRP is experiencing a slight increase, in line with broader positive sentiment in the crypto and stock markets. The currency has actually been in a downtrend for months, since its price peak of around €3 in July of this year. The current XRP price in euros is around €1.80.
Previously, it was reported that some analysts see signs of hope regarding XRP’s price developments.