The price of XRP, the native token of the XRP Ledger, has been trading sideways along with most other cryptocurrencies. However, a popular analyst named CoinsKid believes that XRP could soon break out from this pattern. In a video shared with over 270,000 subscribers on YouTube, CoinsKid pointed out a key technical pattern on XRP’s price chart. This pattern is called a head and shoulders pattern, which is typically seen by technical analysts as a potential trend reversal. It consists of three peaks, with a higher peak in the middle and two lower peaks on the sides, indicating a bearish reversal. If this pattern plays out, CoinsKid predicts that XRP’s price could drop further towards $0.46.
Despite this bearish prediction, CoinsKid also identified an ascending triangle pattern on XRP’s chart, which is a bullish pattern signaling a potential uptrend continuation. This pattern is characterized by a horizontal resistance line and a rising support line. Once the price breaks above the resistance line with high volume, it completes the pattern. CoinsKid suggests that if this pattern is validated, XRP could move towards a significant resistance level.
Interestingly, institutional investors have been showing interest in XRP recently. Cryptocurrency investment products focused on XRP have received over $700,000 in inflows from institutional investors in the past week. This demonstrates growing interest and confidence in XRP as an investment. In contrast, Ethereum-focused products have experienced outflows of over $115 million year-to-date, while Solana-focused products saw inflows of $26 million. XRP products have seen $14 million in inflows during the same period, resulting in assets under management of $60 million.
It remains to be seen whether XRP will break out of its sideways trading range and how these patterns on its price chart will unfold. However, the interest from institutional investors suggests that XRP continues to be an asset of interest within the cryptocurrency market.