XRP has mostly traded below $0.5 since the second week of June, but a new price formation shows this may change very soon. According to a crypto analyst known pseudonymously on social media as ZAYK Charts, XRP has been forming a wedge pattern for the past few months that could collapse by 40%. escape from the current price level.
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XRP About to Break Out
As most cryptocurrencies, the price of XRP has fallen in recent weeks. Coinmarketcap price data shows it is down more than 9% from its peak of $0.528 in the first week of June. This has left investors wondering whether XRP will extend this price decline into July, which could see it fall below $0.45 again. However, a recent falling wedge pattern suggests the reverse may be the case.
A falling wedge forms when price action reaches lower highs and lower lows, with the contraction lines converging. This creates a wedge-like shape on the chart. The slope is downward, but not as steep as at the beginning of the pattern.
According to an XRP price chart shared on social media by ZAYK, the cryptocurrency is currently in a descending wedge formation on the 12-hour time frame. ZAYK believes that a breakout above the wedge could see the altcoin surge by around 40% from current levels to around $0.65.
$XRP Descending wedge formation in the 12H period ✅
When a breakout occurs, we anticipate a bullish wave of 30-40%📈#XRP #XRPUSDT #Curling #Crypto pic.twitter.com/aNnRacGFv4
– ZAYK Charts (@ZAYKCharts) June 28, 2024
Crypto Analysts Align: XRP Poised for Breakout?
Interestingly, ZAYK’s XRP outlook aligns with a similar analysis by Captain Faibik, another popular crypto analyst. Faibik’s analysis is based on the daily candle time frame, which also shows a similar wedge formation. According to analyst predictions, if the crypto manages to break through the upper resistance of the wedge, we could see a massive 40% price increase to $0.69 in August.
While the breakout predicted by ZAYK and Faibik has immense upside potential, it pales in comparison to EGRAG’s bullish outlook. The analyst, known for his bullish stance on XRP, believes it is still on track to reach the $6.4 target.
As demonstrated by EGRAG latest XRP analysisthe recent price drop is simply a natural consolidation, and the monthly timeframe candle formation is still closing above the 0.236 Fib. A successful breakout would see the coin push towards the 0.5 Fib retracement at $0.75 before falling towards the 1.618 Fib at $6.4.
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At the time of writing, XRP is trading at $0.474, which is still a long way from EGRAG’s target price. In fact, we could witness the altcoin rising above 40% in July if it repeats its previous July performance over the past four years.
Featured image from Pexels, chart from TradingView