XRP, the cryptocurrency of payment company Ripple, shows a 6% surge during Tuesday’s market session to trade at $2.2. The buying pressure followed Bitcoin’s recovery past $90,000 as the diplomatic efforts from the U.S. administration are actively negotiating with other countries to make a new trade deal. The renewed recovery pushed the XRP price against the resistance of a key reversal pattern, signaling an opportunity for a higher rally.
XRP Price Signals Breakout From Major Reversal Pattern.
Since last week, the XRP price has showcased a low-volatility sideways trend, wavering around the $2 psychological level. The consolidation with a series of neutral candle bodies and rejection on either side indicates a lack of dominance from bulls or bears.
However, the 4-hour analysis reveals the lateral trend as the final pullback in an inverted head and shoulder pattern. The chart setup is characterized by three distinct troughs: the middle head, which is enveloped by two narrow dips called shoulders.
With today’s market jump, the Ripple cryptocurrency is less than 1% short of the challenging neckline resistance of $2.21. A successful flip of the overhead barrier into potential support could mark an initial reversal in market sentiment.
The potential breakout will also reinforce XRP’s sustainability above the 20- and 100-day EMAs slope, reinforcing the bullish sentiment among traders. The momentum indicator RSI heading towards the 60% region indicates the buyers are gradually strengthening their grip over this asset to drive a high-momentum rally.
The post-breakout rally could push the price another 7% before it hits the resistance trendline of the bull flag pattern. This chart pattern of a higher time frame drives the current retracement fall in Ripple cryptocurrency.
The potential breakout will signal the end of the correction trend and accelerate the market recovery for a $3 breakout.
On the contrary, if the XRP price struggles to beat either of the aforementioned resistances, the sellers will force a sustained downtrend.
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