XRP Price Alert: Analysis Shows $3.90 Target

XRP prices recently experienced a significant drop of 10.51% to $2.06, causing concern among investors. However, a closer look through the latest price analysis reveals a more optimistic outlook as XRP currently trades at $2.18 with key support levels above the 200-day moving average, ranging from $1.76 to $1.80.

Market analysts have identified an inverse head and shoulders pattern in XRP’s price chart, signaling a potential bullish trend in the future. This pattern is expected to remain valid until April 2025, with the crucial condition being that the price stays above $2.00 to affirm its bullish stance. Further advancement beyond $2.65 could trigger a significant upward surge, with technical indicators pointing to a target range of $3.70 to $3.90, potentially extending to $4.60 under continued buying pressure.

The inverse head and shoulders pattern is a promising bullish reversal formation observed by technical experts in XRP’s chart. Comprising three distinct price movements, this pattern suggests a shift from a downtrend to an uptrend.

The pattern initiation occurred when XRP hit $2.06, forming the left shoulder, which represents a temporary price low that rebounded consistently since December 2024. subsequent formation of the head at a lower point of $1.93 in March 11 marked the pattern’s lowest phase, accompanied by unique volume characteristics indicating reducing selling pressure.

Currently, XRP is in the right shoulder development phase near $2.34, showcasing a higher low than the head, a typical attribute in an inverse head and shoulders pattern. This phase commenced in early March, with analysts predicting the possibility of some downside movement before completion.

A significant resistance level exists at $2.65, acting as the pattern’s neckline. A decisive breakthrough above this level would affirm the inverse head and shoulders pattern and potentially trigger a substantial uptrend. Various technical indicators support XRP’s journey towards the $3.90 target, including the Relative Strength Index sitting at 47.39, providing room for further climbs before facing resistance, and the Moving Average Convergence Divergence histogram displaying promising signs of bullish momentum.

Moreover, the 200-day simple moving average at $1.76-$1.80 plays a critical role in offering long-term support and confirming the bullish structure of XRP. By maintaining support at $2.00, reclaiming $2.65, and surpassing $3.00 resistance, XRP aims to reach the projected target of $3.90. Historical price analysis from previous breakout patterns further reinforces the potential success of the current inverse head and shoulders pattern, suggesting a positive outlook for XRP’s future movement.