inverse and complex HS formation is eye-balling 2,22$ for XRP
It almost seems as if everything is going like clockwork for Ripple. The only positive news that seems to be missing is that the company manages to settle the legal dispute with the US regulator SEC.
The Ripple price also shows that something could be brewing with the native altcoin XRP. According to the chart below, a complex head-and-shoulders bottom formation is currently forming. This has a head (H), two left shoulders (LS) and two right shoulders (RS).
The chart pattern as such is considered very reliable with an error rate of just 6%. It also reaches its minimum price target in more than 8 out of 10 cases and this is where it gets interesting. Because according to the formation pattern here, it results in a Ripple forecast of $2.22.
This price target is about 120% above the current price level of $1.02.
However, there are a few reasons why this price target should be taken with a grain of salt. First of all, the general market situation is currently quite uncertain. Furthermore, the neckline is sloping downwards. This is a first possible sign of weakness. Last but not least, the volume on the XRP token is still quite low.
Accordingly, it may be a good idea here to observe the situation a bit more. What is still missing here as the last confirmation of the chart pattern is the breakout of the neckline.
This breakthrough should be very clear and under a relatively strong increase in volume. Otherwise, there are certainly better trading opportunities on other days on other charts. However, those who are comfortable with risk can also risk an early placement in the market with the right risk management due to the general reliability of the chart pattern.
The Ripple price also shows that something could be brewing with the native altcoin XRP. According to the chart below, a complex head-and-shoulders bottom formation is currently forming. This has a head (H), two left shoulders (LS) and two right shoulders (RS).
The chart pattern as such is considered very reliable with an error rate of just 6%. It also reaches its minimum price target in more than 8 out of 10 cases and this is where it gets interesting. Because according to the formation pattern here, it results in a Ripple forecast of $2.22.
This price target is about 120% above the current price level of $1.02.
However, there are a few reasons why this price target should be taken with a grain of salt. First of all, the general market situation is currently quite uncertain. Furthermore, the neckline is sloping downwards. This is a first possible sign of weakness. Last but not least, the volume on the XRP token is still quite low.
Accordingly, it may be a good idea here to observe the situation a bit more. What is still missing here as the last confirmation of the chart pattern is the breakout of the neckline.
This breakthrough should be very clear and under a relatively strong increase in volume. Otherwise, there are certainly better trading opportunities on other days on other charts. However, those who are comfortable with risk can also risk an early placement in the market with the right risk management due to the general reliability of the chart pattern.