Ripple (XRP) price poised for a massive 43% rally as W-bottom pattern emerges

 XRP price has been consolidating in a narrow range for the past few weeks, but it seems that the bulls are ready to make a decisive move soon. The technical analysis reveals that the XRP price has formed a massive W-bottom pattern on the daily chart, a bullish reversal signal.

A W-bottom pattern consists of two low points that are roughly equal in price, separated by a higher point. The pattern is confirmed when the price breaks above the neckline, which is the resistance level connecting the two high points. The breakout target is calculated by adding the pattern’s height to the neckline.

In XRP’s case, the W-bottom pattern has a height of $0.18 and a neckline of $0.57. Therefore, if the XRP price can close above $0.57 daily, it would confirm the pattern and signal a 43% rally to $0.765, which is also near the 200-day simple moving average (SMA).

However, the XRP price faces some obstacles before reaching the breakout point. The first one is the 50-day SMA at $0.54, which has acted as a dynamic resistance in the past. The second one is the 61.8% Fibonacci retracement level at $0.56, which coincides with the neckline of the W-bottom pattern.

Therefore, XRP bulls must push the price above these levels with conviction and volume to validate the bullish scenario. On the other hand, if XRP price fails to break above $0.57 and falls below $0.48, which is the support level of the W-bottom pattern, it would invalidate the bullish outlook and trigger a 16% decline to $0.40, which is the next significant support level.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Trading cryptocurrencies involves high risks, and you may lose your entire capital. Always do your own research and consult a professional before making any investment decisions.