Yerevan (CoinChapter.com) — XRP analyst Vince Prince spotted an inverse Head & Shoulders pattern in the token’s price against the US dollar. Drawing the price target at the $1.95-threshold, he claims XRP is entering a bullish breakout. The analyst posted a chart on Trading View to back his predictions.
The bullish technical setup ‘inverse Head & Shoulders indicator’ is a chart formation with three dips below a mutual “neckline.” The middle dip in the price is the lowest and is referred to as the head (H). The other two are the shoulders (S). The inverse H&S setup indicates a bearish to a bullish trend reversal.
This setup predicts the typical behavior of traders. It emphasizes that most traders and investors tend to go in when they consider a token oversold. In other words, they wait until the price drops low enough, then make a move and buy the token, expecting gains in the future. This engagement causes the price to soar. In the case of inverse H&S, it soars way past the neckline. A stretch equal to the distance between the lowest dip (the Head) and the neckline.
According to Vince Prince, the price will soar indeed, reaching $1.95 before it declines against the resistance line he estimated.
SEC Lawsuit Effect On XRP
Ripple Labs, the blockchain company behind XRP, is facing a lawsuit from the Securities and Exchange Commission (SEC) since December 2020.
The US securities regulator accused Ripple of selling XRP illegally and claims the latter should be considered security rather than a currency. Their lengthy court proceedings have left the XRP price in the balance, as it remains highly influenced by the case’s outcome.
On April 23, Ripple’s CEO Brad Garlinghouse came forth with an interview to the ThinkingCrypto channel. He announced that he would not rule out burning XRP coins to cut the supply and maintain XRP’s bullish bias.
Ripple previously floated around the possibility of destroying coins held in the company’s escrow last December. Such a decision depends on the network’s nodes, validators, and the community.
Matt Borelli for CoinChapter.com
Combined with Prince’s technical analysis, the token burn will only facilitate the existing trend and propel the XRP’s value further.
XRP’s price depends on Ripple’s decision concerning the token burn and the behavior of traders. Should the inverse H&S pattern prediction fulfill itself, XRP will reach the $1.95 benchmark in May. The token still trades at $1.37 as of the moment of writing.
Image by WorldSpectrum from Pixabay
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