Cryptocurrency XRP is preparing for a powerful bullish trend

A cryptocurrency expert known as Egrag has identified a head and shoulders (H&S) pattern on the XRP/USD chart. According to the analyst, this indicates a potential bullish reversal in the near term. The pattern, which has been forming over the past two weeks, illustrates that XRP XRP $0.56 XRP 2.90% Market capitalization $31.58 billion VOL. 24 hours $0.19 billion may be preparing for a significant price jump.

The Egrag chart shows XRP’s price action on a 4-hour time frame, where the cryptocurrency has been trading within a descending channel (blue) since early November. It is noteworthy that a descending channel is usually considered a bearish pattern.

However, last Wednesday, the XRP price broke out of the descending channel. Although the breakout did not hold and turned out to be «false,» it paved the way for the emergence of the H&S Inverse Pattern, which is now shifting momentum in favor of the bulls.

«Technically, the H&S Inverse Pattern is characterized by two smaller peaks (shoulders) on either side of a larger trough (head. Theleft shoulder formed within the support level of $ 0.586, and the head dropped to $ 0.574 before rising to form the right shoulder at $ 0.593,» Egrag analyzes.

The pattern indicates that the bearish trend is losing momentum and may reverse to a bullish one. The crypto expert’s analysis points to key price levels to watch for, with the neckline of the H&S Inverse Pattern at $ 0.6289.

A decisive breakout above this resistance level could lead to a price increase on XRP $0.56 XRP 2.90% Market capitalization $31.58 billion VOL. 24 hours $0.19 billion to $ 0.7, which is in line with the predicted breakout target of the model. In addition, the Egrag analyst’s target is at $ 0.7311, which marks the beginning of a downward channel. A rally to this price level would mean a 20% increase from the current XRP price.