XRP, the native cryptocurrency of the Ripple network, has been showing signs of a possible bullish breakout, according to a crypto analyst who goes by the name of EGRAG CRYPTO. The analyst posted a chart on X (formerly Twitter) on November 4, highlighting a “W” pattern that could indicate a strong upward movement for XRP in the near future.

What is a “W” pattern and why is it bullish?

A “W” pattern is a technical analysis term that describes a price formation that resembles the letter W. It consists of two rounded lows and highs that are roughly equal in size and shape. The pattern is considered bullish because it suggests that the price has found support at the lower level and is ready to bounce back to the higher level or beyond.

EGRAG CRYPTO’s analysis focused on the weekly candle formation of XRP, which showed a clear “W” pattern forming since August 2021. The analyst noted that closing above $0.58 would signal a bullish trend, as long as the candle formation adheres to a bullish pattern, indicating sustained positive momentum.

The analyst also compared the current “W” pattern to a previous one that occurred between 2017 and 2018, which led to a massive surge in XRP’s price, reaching $0.93 in November 2021. This surge was interpreted as a retest of the upper price range, a positive sign for investors. In this line, EGRAG CRYPTO suggested that XRP could experience another surge, potentially reaching $1.3.

What are the factors that could drive XRP’s price higher?

XRP’s price is not only influenced by technical analysis, but also by fundamental factors, such as market sentiment, news, and developments. Some of the factors that could boost XRP’s price higher are:

The ongoing legal case between Ripple and the U.S. Securities and Exchange Commission (SEC), which has been showing signs of favoring Ripple in recent updates. The SEC dropped claims against two Ripple executives in its lawsuit, alleging that the company violated U.S. securities law by selling XRP as an unregistered security. This could pave the way for a settlement or a dismissal of the case, which would remove a major obstacle for XRP’s adoption and growth.
The increasing adoption of XRP by institutional and retail investors, as well as by payment and remittance platforms. XRP is designed to facilitate fast, cheap, and scalable cross-border transactions, which makes it attractive for various use cases and sectors. For example, Ripple recently joined the International Swaps and Derivatives Association (ISDA), a global trade association that represents over 1,000 member institutions from 79 countries in the $1.2 quadrillion derivatives market. This could open new opportunities for XRP to be used as a bridge currency or a settlement asset in the derivatives industry.
The positive market sentiment and momentum for the cryptocurrency sector in general, which could lift XRP along with other major coins. The cryptocurrency market has been on a bullish trend since October 2021, driven by factors such as the launch of the first Bitcoin futures exchange-traded fund (ETF) in the U.S., the growing adoption of crypto by mainstream companies and institutions, and the anticipation of the Bitcoin halving event in 2024, which could reduce the supply and increase the demand for the leading cryptocurrency.

How to trade XRP in 2024?

XRP is currently trading at $0.62, up by 2.4% in the last 24 hours, according to CoinMarketCap. The coin has a market capitalization of $33.07 billion, ranking fifth among all cryptocurrencies. XRP has been facing resistance at $0.67 and finding support at $0.55, indicating a relatively stable market with limited bearish pressure.

However, if XRP breaks above the $0.67 level and confirms the bullish “W” pattern, it could trigger a significant rally towards the $1.3 target, as predicted by EGRAG CRYPTO. This would represent a 111% increase from the current price level. On the other hand, if XRP fails to close above $0.58 and falls below the $0.55 support level, it could invalidate the bullish pattern and trigger a bearish reversal, possibly testing the $0.4 or $0.3 levels.

Therefore, traders who want to capitalize on XRP’s potential price movements should pay attention to the technical indicators, such as the candle formation, the volume, and the momentum, as well as the fundamental factors, such as the news, the developments, and the market sentiment. Traders should also use risk management tools, such as stop-loss orders and take-profit orders, to protect their positions and lock in their profits.