XRP appears to be nearing completion of a notable inverse head-and-shoulders pattern on its daily chart. Based on the analysis from well-known figures like chart analyst Ali Martinez, if the price secures a daily close above the crucial resistance level of $1.55, it could pave the technical path toward a rally reaching the $2 mark.
Is $1.55 the Key Level for XRP?
The current pattern has developed over the past summer months. A steady phase in June formed the left shoulder, while a dip to around $1.00 in August shaped the head. Recently, a consolidation between $1.32 and $1.36 has crafted the right shoulder. This makes the $1.55 mark the neckline’s pivotal threshold in the technical setup assigned to this formation.
Analysts suggest that if a daily candle closes above this resistance, it would complete the pattern. The geometric target of this pattern points to a potential 35% movement upwards, highlighting the psychologically significant $2 level.
Experts like Ali Martinez emphasize that a sustained close above $1.55 could formalize a bullish trend for XRP, further supporting projections toward the $2 region.
Supporting the technical picture, moving averages also play a role. The gap between the 50-day and 200-day exponential moving averages shrinking below 2% hints at a classic golden cross scenario, signaling possible strengthening of the trend. In technical terms, this is considered an indication of a potential mid-term uptrend.
Are Large Investors Preparing for a Move?
In addition to technical expectations, on-chain data is gaining attention. According to CryptoQuant, large investors have transferred 1.5 billion to 1.6 billion XRP to Binance over the past month. CryptoQuant is known for tracking blockchain data and analyzing market behavior through metrics like exchange inflows and outflows.
These large movements in exchange inflows don’t always imply immediate sales. Such assets might be used for collateral transactions, derivative positions, or over-the-counter deals. Therefore, the absence of immediate selling pressure indicates that buyers can absorb the incoming supply.
Despite the movement of significant quantities of XRP to Binance, the price remained stable in the right shoulder region, suggesting that the market could handle the supply influx.
How Regulatory Developments Affect Confidence?
News flows also play a role in supporting buyer confidence. The US Senate’s rejection of the CLARITY Act on September 15 was seen as a negative signal. However, CFTC’s continued recognition of XRP as a digital commodity helps maintain expectations that it will be less affected by certain SEC allegations.
Meanwhile, Ripple is making strides to broaden the utility of the XRP Ledger. The beta testing of the XRP Ledger integration into infrastructure like Stripe and Tempo, which began on September 17, could introduce a new use case in autonomous AI program micro-payments. In the short term, focus remains on the $1.32 to $1.33 support band and the $1.55 neckline. If the price holds this support and closes above $1.55, the technical scenario for a 35% upward move will gain stronger traction.
