XRP Creates a Bullish Reverse Dragon Head Pattern: What Price Targets Can We Expect?
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XRP is once again displaying signs of bullish momentum, even in the face of previous declines. Currently, the cryptocurrency is developing a notable pattern that indicates a possible continuation of the bullish trend that initiated in April. While this pattern has not yet fully formed, its completion would be very positive for the price of the altcoin.
XRP Price Exits Yo-Yo Movement
To date, the XRP price has been consistently bouncing at a support level just above $2, which a crypto analyst on TradingView compared to a ‘yo-yo’ motion. Instead, a bullish pattern is emerging known as the Reverse Dragon Pattern.
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This Reverse Dragon Pattern is evident on the daily chart, and historical analysis suggests that it could lead to a rapid price increase for XRP. According to the analyst, the Dragon head is already taking shape on the daily chart, positioned above the upper trend line illustrated below.
If this pattern completes, it could lead to a significant upward movement as bullish sentiment strengthens. Furthermore, the analyst anticipates “a liquidation candle forming around the area of the Weak Dojo/Reverse Waterfall line.” This upward trend is expected to persist, and over the upcoming weeks, XRP’s price may surpass $3.
Analyst Predicts Potential Price Directions
While the formation of the Reverse Dragon Pattern indicates a bullish trajectory for XRP, another analyst has outlined various potential scenarios that could unfold going forward, beyond just the optimistic outlook. This includes outcomes depending on whether the bulls prevail, the bears take control, or if the current standoff continues.
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The first scenario arises if the price surpasses the resistance level of $2.3612. In this case, the analyst expects a continuation of the upward movement, potentially breaking through several key resistance levels before facing resistance again at $2.9.
On the contrary, if the bulls drop below the support level of $2.03445, this could trigger further declines for XRP, potentially leading to a drop towards $1.6, where stronger support exists at $1.63339.
Lastly, if the market remains indecisive and both bulls and bears continue their struggle without a clear victor, it is possible that sideways movement will prevail. “Currently, hidden divergence is appearing on XRPUSD, hinting at a worsening bearish outlook,” the analyst notes. “Should the price overcome the resistance, this hidden divergence will be nullified.”
Featured image from Dall.E, chart from TradingView.com
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