Ripple’s native token XRP has formed a bullish inverted head-and-should price action pattern. This bullish outlook for XRP is gaining significant attention from the crypto community. However, this perspective emerged after a month of continuous struggles and the recent victory against the United States Security and Exchange Commission (SEC).
XRP Price Prediction
According to expert technical analysis, XRP looks bullish as it is trading above the 200 Exponential Moving Average (EMA) on a daily time frame. The asset’s price above the 200 EMA hints that it is in an uptrend.
In addition to XRP’s uptrend, it has also formed an inverted head-and-shoulder price action pattern. Based on historical price momentum, if XRP gives a breakout of this price action pattern and closes a daily candle above the $0.65 level, there is a high possibility it could surge by 15% to reach the strong resistance level of $0.75.
The $0.75 level will act as a strong resistance level, as XRP has reached this level three times since 2023, each time facing significant selling pressure. However, a significant rally could follow if XRP manages to break through this level.
XRP’s Rising Open Interest
Following this bullish price action pattern, XRP’s open interest has skyrocketed by 12%, and it has been gradually increasing, according to the on-chain analytic firm CoinGlass. This indicates a growing interest from investors and traders as XRP approaches the breakout level.
At press time, it is trading near $0.63 and has experienced a price surge of over 5% in the last 24 hours. Meanwhile, its trading volume increased by 30% during the same period, indicating higher participation from traders.
Major Liquidation Levels in XRP
As of now, the major liquidation levels are near $0.596 on the lower side and $0.651 on the upper side, as traders have over-leveraged in the last 24 hours, according to CoinGlass data.
If the market sentiment remains the same and the price rises to $0.651, nearly $11.81 million worth of short positions will be liquidated. Conversely, if the sentiment shifts and the price falls to the $0.596 level, nearly $22.90 million worth of long positions will be liquidated.
This shows bulls are back in the action and there is a high possibility that XRP could experience a breakout and reach the $0.75 level.
