XRP, the popular cryptocurrency, is showing signs of a potential reversal, with a bullish pattern forming on its weekly chart. If it breaks above key resistance levels, XRP could be on track to reach $1, giving traders optimism after recent underperformance.

XRP Shows Signs of Bullish Reversal

There is a technical setup developing for XRP that can push its price to $1 soon. So far this year, the popular cryptocurrency has underperformed the crypto industry as a whole.

While other big assets have gained almost 20% since the beginning of the week, it has fallen more than 15%. Though XRP has been experiencing a slump as of late, there are encouraging indications on the weekly chart.

Inverted Head and Shoulders Pattern Takes Shape

An inverted head and shoulders pattern appears to be taking shape, which is a common indicator of a possible trend reversal.

The left shoulder originated around May–December 2022, according to U.Today, and a low point, or head, was reached in June 2023.

Breakout Could Push XRP to $1

The right shoulder began to take form in August of 2024. Traders and investors should pay close attention to the neckline, which is located between $0.65 and $0.66. It is possible that XRP is heading towards the $1 mark if it breaks out above this zone.

This would be the usual aim for a setup like this based on past price patterns.

If XRP is able to break above the 50-week and 200-week exponential moving averages, it will provide more evidence to support bullish sentiment. If the price remains above these levels, traders will likely have greater faith in the breakout story, increasing the likelihood that the price will continue to rise.

Long-Term Price Target at $4.2

The figures are even more ambitious when looking at the longer-term metrics. A large breakout may be imminent if the monthly chart displays a symmetrical triangle pattern. If the upper trendline is broken, certain technical models predict that XRP might reach a price of $4.2.