The XRP is attempting inverse head and shoulders formation in the 1H chart with the neckline support crucial at $2.95.
RSI Holds at 55.74 and MACD indicates a gentle bullish crossover indicating probable but careful rise.
The reversal setup would not be complete until price breaks above the $3.01 resistance; otherwise, it could attract a fresh wave of sellers.
The XRP price is currently trading at $3.00 after a slight recovery from a local pullback. Market activity shows price stability above the $2.95 support level. Despite a 4.6% weekly decline, technical conditions have not yet invalidated the ongoing bullish structure.
A potential inverse head and shoulders (H&S) pattern is forming on the hourly chart, supported by key technical indicators and structure zones. This setup remains active as long as XRP maintains the crucial $2.95 level.
Structural Pattern Suggests a Potential Reversal Setup
The hourly chart reveals a clear formation of an inverse head and shoulders pattern. The left shoulder formed during the initial rejection phase, while the head developed following a deeper dip towards the $2.90 zone. Price then rebounded into the neckline zone, currently aligning with a demand area highlighted in green. This level spans roughly between $2.94 and $2.98. Price action shows a consistent reaction from this range, indicating buying interest.
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Notably, the current price sits just above this green zone, following a shallow pullback. The latest candle shows signs of recovery after touching the lower end of this support area. This reaction supports the right shoulder's formation. However, confirmation of the pattern requires a sustained close above the $3.01 resistance zone.
Key Technical Indicators Remain Neutral
Momentum indicators offer mixed signals but remain within neutral territory. On the 1-hour RSI chart, values currently stand at 55.74 and 53.69. These readings suggest mild bullish momentum without reaching overbought conditions. Price appears to be consolidating within a healthy range.
Source: TradingView
Meanwhile, the MACD indicator shows slight bullish divergence. The MACD line is above the signal line, with histogram bars showing mild positive strength. Although momentum is not aggressive, it remains in favor of continued upward structure formation. However, increased volume would be required to validate any breakout attempts.
Neckline Zone Eyed as Market Shows Signs of Indecision
Market cap data from TradingView indicates a balanced position. Current figures show buy and sell values at $177.8 billion each, highlighting indecision. This symmetry suggests that neither buyers nor sellers have clear control at the moment.
Support at $2.93 remains vital. If broken, the structure could shift towards bearish continuation. However, current market behavior continues to defend this level. Price stability around the neckline near $3.00 keeps the potential breakout scenario active. Traders may closely monitor this zone for short-term directional clarity.
