The XRP price has experienced a sharp downturn this year, with the daily chart showing a strong freefall that saw Ripple plunge from its July high of $3.668 to a key support level at $1.8145. This decline pushed XRP below the 50-day and 100-day moving averages and kept it under the Supertrend indicator, a technical signal that confirms bears have remained in control for much of the year. Despite this bearish structure, several technical and fundamental factors suggest that a bullish reversal could be approaching.
From a technical analysis perspective, XRP has formed three notable chart patterns that often precede upward breakouts. First, the price has established a bullish triple-bottom pattern around $1.8145, marking its lowest point in October, November, and December. This pattern typically indicates that selling pressure is weakening, as bears appear reluctant to push prices below this support zone. Second, an inverted head-and-shoulders pattern has emerged, a classic bullish reversal signal. The neckline, drawn across the highest price swings since late October, represents a critical resistance level that could unlock further gains if broken. Third, XRP has developed a falling wedge pattern defined by two descending, converging trendlines, which often resolves with a bullish breakout as price action nears the apex.
Momentum indicators further strengthen the bullish XRP price prediction. Both the Relative Strength Index and the Percentage Price Oscillator have formed a bullish divergence, rising gradually even as the token’s price remained under pressure. This contrarian signal often suggests that downside momentum is fading and that a trend reversal may be near.
If these signals play out, the most likely near-term target for XRP is the psychological $2 level. A decisive move above that area could open the door for a rally toward $2.50. However, the bullish outlook would be invalidated if XRP drops below the $1.8145 support, which could trigger a deeper pullback toward $1.50.
Beyond technicals, XRP is supported by strong catalysts. XRP ETF inflows have surged since approval in November, with net inflows exceeding $1.07 billion and total assets climbing to $1.2 billion, signaling sustained institutional and retail interest. Additionally, the Ripple USD stablecoin continues to grow rapidly, with assets reaching $1.33 billion and trading volume spiking sharply. Rising futures open interest also points to increasing market participation, reinforcing optimism for XRP’s next move.
Comment 0