- XRP price has set up multiple inverse head-and-shoulders set up over the past few years.
- The recent breakout from the said setup in May resulted in a 12% ascent.
- The latest formation, however, forecasts a 24% upswing to $0.673.
XRP price has been remarkably bullish over the past few weeks, rallying sharply to shatter long-standing hurdles. The recent consolidation has resulted in a bullish formation hinting at a breakout rally soon for Ripple enthusiasts.
XRP price and its history of inverse head-and-shoulders
XRP price set up an inverse head-and-shoulders setup on the three-day chart in 2019 and 2020. The breakout from this technical formation initially resulted in a nearly 190% ascent. After a full retrace and retest of the neckline, the XRP price rallied 607% between March and April 2022.
XRP/USDT 3-day chart
The most recent example of the inverse head-and-shoulders setup was in May 2023. After a decisive breakout above the neckline on May 26 XRP price rallied 12% to hit the forecasted target at $0.525.
XRP/USDT 4-hour chart
XRP price ready to make its next move
XRP price has set up an inverse head-and-shoulders setup on the daily timeframe. The price action, extending from late March to June 24, shows three distinctive swing lows. The central one is steeper than the rest and is termed the “head.” On either side of the head are “shoulders,” which swing lows of nearly comparable depths.
Connecting the swing highs of these three valleys shows the formation of a neckline. A decisive move above this neckline is considered as a successful breakout. In such a case, the target for the setup is obtained by measuring the distance between the head’s right peak and its lowest point and adding it to the breakout point.
In Ripple’s case, the setup forecasts a 24.33% ascent to $0.673.
XRP/USDT 1-day chart
Considering that the XRP price is still forming the right shoulder, it is too early to tell if this potential bullish setup will be complete. A failure to form the right shoulder and breakout above the neckline will mean a weak bullish camp for the remittance token.
If XRP price produces a lower low below the June 16 swing low at $0.455, it will invalidate the bullish setup. Such a move could potentially trigger a 12% correction that retests the May 8 swing low at $0.410.