In recent weeks, prices of XRP have faced significant declines, losing over 10.51% of its value as it struggled to find a local bottom, trading as low as $2.06. Amid this turbulent period, notable crypto analyst Egrag Crypto has suggested a potential bullish reversal could be on the horizon, dependent on certain market conditions.
According to an analysis conducted by Egrag Crypto, a developing inverse head and shoulders pattern indicates that this prominent altcoin may soon experience a significant breakout. This bullish formation often signals an impending shift from a downtrend to an uptrend. The pattern typically consists of:
- Left Shoulder: A temporary price low followed by a rebound.
- Head: A deeper low that marks the lowest point.
- Right Shoulder: A rebound leading to a higher low compared to the head.
This exciting setup brings a window of opportunity for investors, valid until April 20, 2025. Egrag emphasizes that for the bullish pattern to remain alive, XRP must avoid a daily close below $2.00. A significant breakout will only be confirmed if the price surges above $2.65, which forms the neckline of the formation.
Should XRP manage to break through its immediate resistances, particularly at the $3.00 price zone, it can pave the way for substantial gains. A move beyond this resistance could take the coin between $3.20 and $3.40, which is crucial for sustaining the potential uptrend. According to Egrag, the breakout from the current bullish setup is likely to lead XRP to a price target of $3.70 to $3.90, potentially establishing new all-time highs.
In a more optimistic scenario, projections suggest XRP could rise to around $4.60. However, analysts warn that reaching this level could indicate incoming distribution among investors, possibly leading to a price correction. Currently, XRP is trading at $2.18, reflecting a modest daily gain of 0.91% and a decline in daily trading volume by 10.28%, hinting at a possible stabilization in the market.
With the ongoing legal proceedings set to conclude in May by the US Securities and Exchange Commission, which is expected to terminate its long-standing case against Ripple, the regulatory uncertainty hanging over XRP may soon be lifted, further enhancing the outlook for this cryptocurrency.
