XRP has mostly traded below $0.5 since the second week of June but a new price formation shows this could change very soon. According to a crypto analyst known pseudonymously on social media as ZAYK Charts, XRP has been forming a wedge pattern over the past few months that could succumb to a 40% breakout from the current price level.
XRP On The Verge Of Breaking Out
Like most cryptocurrencies, the price of XRP has declined in the past few weeks. Price data from Coinmarketcap shows it has declined by over 9% from its peak of $0.528 in the first week of June. This has left investors wondering if XRP will extend this price decline in July, which could see it fall below $0.45 again. However, a recent falling wedge pattern suggests the reverse could be the case.
A falling wedge forms when the price action makes lower highs and lower lows, with the contracting lines converging. This creates a wedge-like shape on the chart. The slope is downward but not as steep as at the start of the pattern.
According to an XRP price chart shared on social media by ZAYK, the cryptocurrency is currently on a falling wedge formation in the 12-hour timeframe. ZAYK believes a breakout above the wedge could send the altcoin surging around 40% from current levels to around $0.65.
$XRP Falling Wedge Formation in 12H timeframe
When a breakout happens, we anticipate 30-40% Bullish wave#XRP #XRPUSDT #Ripple #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 timeframe, which also shows a similar wedge formation. According to the analyst predictions, if the crypto manages to break through the upper resistance of the wedge, we could see a massive 40% price surge to $0.69 in August.
While the breakout predicted by ZAYK and Faibik carries immense potential upside, they pale in comparison to EGRAG’s bullish outlook. This analyst, known for his bullish stance on XRP, believes it is still on track to reach a target of $6.4.
As demonstrated by EGRAG’s latest XRP analysis, the recent price downturn is simply a natural consolidation, and the monthly time frame candle formation is still closing above Fib 0.236. A successful flip would see the coin push to the Fib 0.5 retracement at $0.75 before jetting off to the Fib 1.618 at $6.4.
At the time of writing, XRP is trading at $0.474, which is still a long way from EGRAG’s price target. In actuality, we might witness the altcoin rising above 40% in July if it were to repeat its previous July performance for the past four years.
Featured image from Pexels, chart from TradingView
