XRP (Ripple) to $2? '35% Rally' Opens if $1.55 is Broken

▲ XRP (XRP)/AI Generated Image ©

Amidst XRP (XRP, Ripple) entering a consolidation phase around $1.40, a forecast suggests that if it breaks the $1.55 resistance line, it could see an additional rise of approximately 35% to the psychological target of $2. An 'Inverse Head and Shoulders' pattern, considered a bullish reversal signal on the daily chart, is forming, and this analysis is supported by technical trends and institutional fund demand.

According to crypto news outlet Finbold on September 19 (local time), market analyst Ali Martinez analyzed via X on the 18th that XRP is forming the right shoulder of an inverse head and shoulders pattern. XRP previously rebounded strongly from a low near $1 and is currently consolidating around $1.40. The left shoulder formed in May, the head formed in August when the price temporarily dropped to $1, and currently, the right shoulder is in the process of being formed before a breakout.

The key price level is the neckline of the inverse head and shoulders, at $1.55. Martinez suggested that if XRP definitively breaks above $1.55, it could rise approximately 35% from the neckline, reaching around $2. The target price for an inverse head and shoulders is typically calculated by measuring the price difference between the head and the neckline and then applying it above the breakout point. The analysis suggests that if bullish momentum further expands, there could be potential for additional gains beyond $2.

Technical indicators also show a relatively favorable trend. At the time of writing, XRP was trading at approximately $1.41, and the Fear & Greed Index stood at 71, indicating strong investor optimism. The price is above both the 50-day Simple Moving Average (SMA) of $1.25 and the 200-day Simple Moving Average of $1.27. The 14-day Relative Strength Index (RSI) is at 55.29, remaining in the neutral zone, suggesting that there is still room for further upside before entering the overbought territory.

Institutional fund flows also showed a relatively robust performance amidst short-term volatility. The XRP spot ETF recorded net inflows of $11.26 million on September 14 and $3.5 million on September 16. Conversely, there was a net outflow of $5.15 million on the 17th and $43,700 on the 18th. Although recent fund flows have been mixed with both inflows and outflows, the previous net inflows indicate that institutional investors' demand for XRP investment continues despite short-term profit-taking, the media explained.

Ultimately, the first hurdle for XRP's $2 scenario is $1.55. The analysis suggests that the technical target price, predicated on an approximately 35% rise, will only become valid if the currently forming inverse head and shoulders pattern is completed and its neckline is definitively broken. Finbold assessed that even the mixed spot ETF fund flows generally remain at a relatively positive level, complementing the bullish structure on the daily chart.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*