XRP Price Forms Swing Failure Pattern, Indicating Potential Bottom

XRP's price has formed a swing failure pattern at the $1.80 level, indicating potential signs of a market bottom. This development suggests that selling pressure might be easing as traders eagerly anticipate confirmation at the $1.98 level.

Key Takeaways

XRP has formed a swing failure pattern around $1.80, hinting at possible bottoming.
The price has reclaimed the $1.80 support level after dropping below it.
Traders are monitoring the $1.98 resistance level for bullish confirmation.
Holding above critical levels, such as the 0.618 Fibonacci retracement, is crucial for a bullish outlook.

XRP price forms bullish pattern that needs further confirmation.

Analyzing the XRP Price Action

XRP price forms a swing failure, signaling a potential bottom - 1

The swing failure pattern present at $1.80 holds notable significance. This pattern occurs when sellers momentarily successfully push the price below a key support level but ultimately fail to maintain it, allowing buyers to reclaim the level. This situation can often signify a local bottom, especially after a prolonged decline.

For XRP, the successful reclamation of the $1.80 level points to buyer activity in this region. However, the price has faced downward pressure after being rejected from the Point of Control (POC) near $1.98, indicating that the bulls have not yet entirely regained control, despite XRP-related ETF assets exceeding $60 million amidst the token's ongoing price weakness.

The current retreat towards the 0.618 Fibonacci retracement acts as a significant test for the bullish perspective. This level generally serves as vital support during corrective phases, which can help in the formation of a reversal. If XRP maintains the level and establishes higher lows, it will further endorse the swing failure pattern and enhance the likelihood of upward continuation.

From a market structure standpoint, XRP is currently in a transitional phase. While the swing failure pattern indicates a possible momentum shift, the overall price structure is not yet decisively bullish. The price remains below the POC and below the Value Area Low, indicating that acceptance into a higher value range has not been achieved.

Investors should keep an eye on the $1.98 level, which serves as both the POC and high-time-frame resistance. A clean reclamation of this price point would signify the acceptance of value and validate the swing failure pattern as a legitimate bottoming formation. This move could pave the way for an increase toward the $2.20 resistance level, where selling pressure has previously emerged.

Despite this potential, caution is advised until this reclaim occurs. If buyers do not follow through, failed swing failure patterns can result in renewed downward movement. Therefore, maintaining support above $1.80 and holding the 0.618 Fibonacci level will be crucial for upholding bullish momentum.

Volume behavior will also be an essential factor for confirmation. A successful breakout beyond $1.98 should be accompanied by increased volume, indicating genuine demand rather than a temporary bounce. Without this support, any price increase may merely serve as a corrective move rather than a significant upward trend.

Future Price Expectations

If XRP manages to sustain its position above the 0.618 Fibonacci level and reclaims the $1.98 Point of Control, the chances of a bullish continuation toward $2.20 will likely increase. Conversely, failing to reclaim this level will keep the price in a rotational phase, necessitating continued caution from traders and investors alike.