The price of XRP, the native token of the XRP Ledger, has been trading sideways along with most other cryptocurrencies in recent weeks. However, a crypto analyst named CoinsKid believes that XRP could soon experience a breakout. CoinsKid identified a key technical pattern on XRP’s price chart known as a head and shoulders pattern, which is often used by technical analysts to predict a potential trend reversal. This pattern consists of three peaks, with a higher peak (head) between two lower ones (shoulders), and typically indicates a bearish reversal, signaling a transition from an uptrend to a downtrend. CoinsKid suggested that if XRP follows this pattern, its price may drop towards $0.46.
However, CoinsKid also noted the presence of an ascending triangle pattern on XRP’s chart, which is a bullish pattern suggesting a potential continuation of an uptrend. The ascending triangle pattern is characterized by a horizontal resistance line and a rising support line, and it is considered complete once the asset’s price breaks above the resistance line with high trading volume. If this pattern comes into play, XRP could move towards a significant resistance level.
Investment products focused on XRP have been attracting inflows from institutional investors, with over $700,000 entering these products in the past week. This influx of institutional investment highlights growing interest in XRP. Notably, Ethereum-focused products have experienced outflows of over $115 million year-to-date, while Solana-focused products have seen inflows of $26 million. In contrast, XRP products have received $14 million in inflows during the same period, resulting in assets under management of $60 million.
In conclusion, XRP’s price has been trading sideways like most other cryptocurrencies, but a crypto analyst suggests that it could experience a breakout. The analyst identified a head and shoulders pattern, signaling a potential trend reversal towards a downtrend, but also noted an ascending triangle pattern that suggests a possible continuation of an uptrend. Additionally, investment products focused on XRP have been attracting institutional investors, further signaling interest in the cryptocurrency.