XRP Price Prediction: Reverse Head and Shoulders Pattern Confirmed, Directly Targeting $3

The Federal Reserve (FED) lowered interest rates by 25 basis points, but Chairman Powell hinted that there may not be a rate cut in December, leading to short-term fluctuations in XRP prices. XRP fell by 6% in a single day, but the volume increased by 13%, indicating accelerated selling pressure. However, XRP just touched the key support level of $2.5, and if it continues to rise, it may confirm a bullish reverse head and shoulders pattern. A breakout above $2.7 will confirm the pattern's validity, with a target price of $3.

The Federal Reserve (FED) cuts interest rates but Powell pours cold water, market expectations adjust

(Source: CME FedWatch)

The Federal Reserve (FED) lowered interest rates by 25 basis points yesterday as expected, but the subsequent remarks from Chairman Powell caused market fluctuations. He emphasized that another rate cut in December is not set in stone, which differs from the market's initial expectations. Powell stated at the press conference: “At this meeting, the committee discussed the course of action for December, and there were significant differences in opinions. A further reduction in the policy interest rate at the December meeting is not a done deal, far from it.”

After these remarks were made, cryptocurrency prices plummeted, but due to the second interest rate cut still being carried out as planned, the market conditions remain favorable. FedWatch data shows that analysts are now more skeptical about the Federal Reserve's dot plot. Before Powell's comments, the likelihood of a rate cut in December was over 90%, and it has now dropped below 70%. This shift in attitude may have a short-term impact on cryptocurrency prices as the market needs to adjust its predictions.

However, regarding XRP price prediction, the token today reached a key support level after confirming a bullish reverse head and shoulders pattern. The emergence of this technical pattern may provide XRP with upward momentum independent of the broader market. Although rate cuts are a positive factor, Powell's uncertain statements mean that XRP will take longer to reach key price levels, and it may maintain a fluctuation pattern in the short term.

XRP performed excellently last week with two major catalysts supporting

In the past week, XRP has risen by 5.7%, making it the best performer among the top five tokens. The $1 billion XRP massive reserve launched by Evernorth is the main driving force behind this price increase. This massive reserve shows that institutional confidence in XRP is strengthening, especially after Ripple's victory in the SEC lawsuit, which has significantly lowered the barriers for institutions to adopt XRP.

At the same time, the only spot XRP exchange-traded fund (ETF) approved by the U.S. Securities and Exchange Commission (SEC) — REX-Osprey XRPR ETF — has exceeded $100 million in assets under management. Although this milestone is relatively small compared to other crypto ETFs, it represents significant progress for XRP on the path to compliance. It is worth noting that this is a futures-based ETF, not a pure spot ETF. XRP is still waiting for the approval of its first pure spot exchange-traded fund (ETF).

XRP Recent Two Major Fundamental Catalysts:

Evernorth $1 billion reserve: Institutional-grade capital allocation shows long-term confidence

REX-Osprey XRPR ETF Breaks 100 Million: Compliant investment tools attract traditional investors

This week, the first Solana spot ETF was approved, attracting over $300 million in assets in just a few days thanks to its highly appealing 7% staking reward. This success story provides an optimistic reference for the prospects of the XRP spot ETF. The U.S. Securities and Exchange Commission may soon approve a similar XRP fund, and if the market demand for the fund is strong, it will further drive up the price of XRP.

From the perspective of XRP price prediction, the approval of a spot ETF will be a key catalyst. The difference between a futures ETF and a spot ETF is that a spot ETF requires the actual purchase and holding of the underlying asset, which will create real buying demand for XRP. If the XRP spot ETF can replicate the success of the Solana ETF, it may attract hundreds of millions of dollars in capital inflow in the short term, providing strong momentum for the breakout of the reverse head and shoulders pattern.

Reverse Head and Shoulders Pattern Detailed Explanation $2.5 is the Key

(Source: Trading View)

This rate cut may boost the altcoin market. However, the uncertainty regarding the Federal Reserve's next steps could dampen the rally, meaning XRP may take longer to reach critical price levels. XRP's trading volume increased by 13% in the last 24 hours, while the token's price fell by 6%, indicating that the selling pressure is accelerating.

XRP is currently priced at $2.5, having reached a key support level, and may experience a strong rebound in the coming hours. After the flash crash on October 10, XRP formed a Reverse Head and Shoulders pattern. This pattern is one of the most reliable bullish reversal patterns in technical analysis, consisting of three troughs: the left shoulder, the head (the lowest point), and the right shoulder. When the price breaks above the neckline connecting the highs of the two shoulders, the pattern confirmation is complete and typically indicates a strong bullish trend.

As long as the key support level of $2.5 remains effective, this pattern indicates that the price of XRP will rise significantly. From the structural perspective of the pattern, the head is located around $2.3, while the left and right shoulders are near $2.5, and the neckline is around $2.7. Currently, XRP is testing the right shoulder support, which is the last test before the pattern confirmation.

However, the 4-hour chart at that time showed that the Relative Strength Index (RSI) was rapidly declining, which does not support the view of an immediate rebound. With negative momentum accelerating, only a sudden shift in market sentiment or strong buying pressure can change the trend of XRP. The RSI is currently at the edge of the oversold region, which usually means that the selling pressure is nearing its end, but a clear reversal signal has not yet appeared.

Breakthrough 2.7 Confirming Form Target 3 US dollars

If the price breaks through $2.7, it indicates that the Reverse head and shoulders pattern is developing as expected; if the price falls below $2.5, it indicates that the bullish tendency of this pattern is invalid. These two price levels constitute the key thresholds for XRP price prediction, determining the trend direction for the coming weeks.

If buyers actively buy XRP at this price level, the price could surge significantly to $3. This means that XRP has a 20% upside potential in the short term. From a risk-reward perspective, if a position is built around the current price of $2.5, with a stop loss set below $2.45 (risking about 2%), and a target price of $3 (potential gain of 20%), the risk-reward ratio reaches 1:10, making it an extremely attractive trading opportunity.

The target price calculation method for the Reverse Head and Shoulders pattern is as follows: measure the vertical distance from the head to the neckline, and then add this distance to the breakout point. The head of XRP is at $2.3, the neckline is at $2.7, and the distance is $0.4. Therefore, the theoretical target after the breakout is $2.7 + $0.4 = $3.1. Considering market friction and resistance levels, $3 is a reasonable conservative target.

However, achieving this goal requires meeting several key conditions. First is volume confirmation; a breakout above $2.7 must be accompanied by a significant increase in volume, ideally more than 1.5 times the daily average volume. Second, the support level at $2.5 must hold; any effective drop below it will invalidate the pattern. Third is the overall market sentiment; if the Federal Reserve (FED) confirms another rate cut in December, or if Bitcoin remains strong, the probability of XRP breaking out will increase significantly.

The opposite scenario must also be considered. If XRP falls below the 2.5 USD support, especially with a volume increase in the fall, it will confirm the failure of the Reverse Head and Shoulders pattern. In this case, the next support level may be at 2.3 USD (the head position), and in more extreme situations, it may test 2.1 USD. Investors should strictly set stop-loss orders to avoid holding onto losing positions after the pattern fails.