Multi-Breakout Stage For XRP Eyes $1 Ahead

With a triangle breakout run, XRP prepares for an inverted head and shoulder pattern in the daily chart. Will the XRP price hit $1 as the buying pressure shoots up?

Amid the broader market recovery, XRP finds a massive demand inflow as investor confidence builds up. Having surpassed the $0.60 mark, XRP gives buy signal in multiple timeframes. Will this sudden increase in demand skyrocket XRP to $1?

Early Bullish Signals with Triangle Break For XRP

In the 4-hour chart, XRP continues its bullish trend after a minor slump. Further, the recent failure of the V-shaped reversal to surpass $0.62 led to a pullback to $0.55. This pullback phase established a strong resistance trendline, forming a triangle pattern. 

During the consolidation near the support trendline, a surge in momentum became evident through a bullish divergence in the RSI. Further, the XRP recovery has now broken above the overhead resistance trendline.

In the 4-hour chart, a golden crossover between the 50 and 200 SMAs further supports the bullish sentiment. Additionally, the price has surpassed the 78.60% Fibonacci level at the psychological resistance of $0.60, currently trading at $0.60935.

Second Breakout Stage For XRP 

In the daily chart, the bullish reversal forms a potential inverted head-and-shoulder pattern, with the neckline at $0.62, below the 78.60% Fibonacci level at $0.64. The actual breakout trade for price action traders would occur with a break above $0.64. 

The daily chart also shows two consecutive bullish candles, with a 6.29% jump overnight and an additional 1.74% intraday gain.

Furthermore, the 50 and 200 SMAs are on the verge of a bullish crossover, while the MACD indicator shows a similar positive crossover, indicating increasing bullish pressure.

Rising XRPL Open Interest Bounces Off of $400M

In the derivatives market, XRP open interest has shown a consistent reversal between $350 to $400 million. Recently, open interest has increased overnight from $400 million to $415 million, now sitting at $469 million. 

This rise in open interest, alongside surging XRP prices, strengthens the likelihood of a bullish trend pushing the price towards the $1 mark.

Will XRP Hit $1?

A breakout above the $0.64 resistance level could push XRP towards $0.72, potentially reaching a new all-time high. Optimistically, the Fibonacci levels suggest a target at the 1.618% Fibonacci level, around the psychological $1 mark.

On the downside, a bearish reversal could invalidate the inverted head-and-shoulder pattern, pushing the price down to $0.55 or the 50% Fibonacci level. Further, the next support levels are at the 23.60% Fibonacci level at $0.4771 and the 0% baseline at $0.41965.