This ‘W’ Pattern Could Send XRP to $35. Here’s how

Crypto analyst Steph (@Steph_iscrypto) has shared an intriguing technical analysis on XRP/USD, claiming that the “W” pattern formation could propel the token’s value to $35. This prediction has sparked widespread discussion among traders and analysts within the cryptocurrency community.

The shared chart focused on a long-term monthly timeframe, illustrates a textbook double-bottom, often referred to as a “W” pattern in technical analysis. This bullish reversal formation is characterized by two consecutive troughs of approximately equal depth, separated by a peak. In this case, the breakout above the neckline (the horizontal resistance formed at the peak) suggests the potential for a significant upward price movement.

This ‘W’ pattern could send #Xrp to $35 pic.twitter.com/PbYFzPhdyY

— STEPH IS CRYPTO (@Steph_iscrypto) December 11, 2024

The Case for $35 XRP

The technical reasoning behind the $35 projection lies in the measured move principle. According to Nic Johnson, a commentator on the analysis, the expected price target can be calculated by measuring the distance between the lowest point of the pattern and the neckline and extending that distance upward from the breakout point.

This method gives a “conservative idea of an expected uptrend size.” He further noted that a more aggressive interpretation could double this projected movement, implying even greater potential for XRP .

Community Reactions and Debates

The analysis has triggered a wide spectrum of reactions on X. One user, The Raging Bull, expressed strong optimism, claiming that “anything under $100 is a shakeout price” and emphasizing the importance of XRP’s utility beyond mere chart analysis.

He pointed out that price charts primarily serve as a tool for gauging retail trading behavior and should not overshadow the transformative potential of blockchain technology.

However, not all reactions were supportive. Another user, Chadette, criticized the analysis, remarking , “So we are making things up now,” questioning the validity of such projections. Johnson responded to this skepticism by defending the technical analysis methodology, describing it as “technically correct and feasible.”

We are on twitter, follow us to connect with us :- @TimesTabloid1

— TimesTabloid (@TimesTabloid1) July 15, 2023

Balancing Technical Analysis with Market Realities

While the chart pattern suggests bullish potential, it is important to approach such projections cautiously. Although technical analysis is widely used, it does not account for external market factors such as regulatory developments, macroeconomic conditions, or XRP’s adoption as a utility token in real-world applications.

Moreover, the ambitious target of $35 implies an over 15-fold increase from the current trading level of $2.33. Achieving such a price would require a combination of technical breakout momentum, significant market demand, and perhaps its integration into global financial systems.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

Follow us on Twitter , Facebook , Telegram , and Google News