The XRP price has formed a bottom reversal signal, indicating the prospect of an explosive surge in favour of the bulls. Furthermore, Ripple has already broken through the pattern, indicating the commencement of this rally. To capitalize on the upcoming move, interested investors should pay special attention to the retest of a critical support level.
The price of XRP formed an inverse head and shoulder pattern, indicating the beginning of an uptrend. Three valleys of differing depths make up this complicated formation. The central dip, which is usually deeper than the lateral one, is known as the head. The shorter valleys on either side of the head are referred to as shoulders, by connecting the peaks of these troughs, a neckline is formed that can be used to determine the breakout.
The 25% objective for this setup is calculated by adding the distance between the neckline and the lowest point of the head. Adding this measurement to the breakout point results in a $1 objective. Interestingly, Ripple previously broke through the neckline on March 19th, indicating the prospect of more progress.
If the retest of the neckline holds, then sidelined investors or buyers can begin purchasing dips and expect the remittance token to rally 25% and retest the psychological milestone of $1.
The supply distribution indicator backs up the bullish thesis advanced from a technical standpoint. This index records XRP wallets that are classified according to the number of tokens stored.
This on-chain signal indicates that whales with more than 10,000,000 XRP tokens have been amassing. The total number of wallets in this category climbed from 317 to 335.
In the previous month, 18 new whales have joined, indicating their intents and high predictions for the XRP price. As a result, market participants should anticipate a significant increase in the remittance token in the following days or weeks.
Regardless of the bullish outlook, the breakout does not always hold on to the retest and the price falls. Such a view is possible and could jeopardize the positive outlook. However, if bears push the XRP price below the right shoulder ($0.740), the bullish thesis will be invalidated.
In this event, investors should expect the Ripple price to fall and find support near $0.702. Despite the invalidation of the inverse head and shoulders configuration, buyers can give the uptrend another shot.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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