XRP price was flat on Monday as crypto investors awaited the next catalyst and as some notable bullish patterns began to emerge.
Summary
- XRP price has formed a triple bottom pattern on the daily chart.
- It has also formed an inverse head-and-shoulders pattern.
- These patterns point to an eventual rebound in the near term.
Ripple (XRP) token was trading at $1.8700 today, Dec. 29, down by nearly 50% from its highest point this year.
XRP’s price action mirrors that of other top coins. For example, Bitcoin (BTC) continues to reject the $90,000 resistance zone, whereas Ethereum remains below the $3,000 support level.
The crypto market is experiencing low volume in the futures and spot markets, as many traders are still on holiday. CoinMarketCap data show that the 24-hour volume stood at $104 billion, while XRP’s was at $2 billion.
XRP’s futures open interest has dropped to $3.48 billion from the year-to-date high of over $10 billion. A decline in open interest is a sign of low market demand and liquidity.
XRP has had some important catalysts this year. For example, the SEC has approved several XRP ETFs, which have accumulated over $1.2 billion in inflows. Similarly, the Ripple USD stablecoin has continued adding assets and now has over $1.4 billion in circulation.
Ripple Labs has made four major acquisitions this year: GTreasury, Hidden Road, Rail, and Palisade. These buyouts will likely leverage the XRP Ledger, RLUSD stablecoin, and the new banking charter.
XRP price technical analysis
XRP price chart | Source: crypto.newsThe daily chart shows that the Ripple price is slowly showing bottoming signs. It has formed a triple bottom at $1.76, a level it has failed to move below three times since October this year. A triple bottom is one of the most common bullish reversal patterns.
The token has also formed an inverse head-and-shoulders pattern, while the MACD indicator indicates bullish divergence.
Therefore, the most likely XRP price prediction is neutral with a bullish bias. A move above the 50-weighted moving average and the neckline of the inverse head-and-shoulders pattern will confirm the bullish breakout.
A rebound may push the token to the next psychological level at $2.50, approximately 35% above the current level. Conversely, a drop below the triple-bottom level at $1.7636 will invalidate the bullish outlook.
Source: https://crypto.news/xrp-price-shows-bottoming-bullish-chart-pattern-emerge/
