XRP Drops but Double Bottom Pattern Suggests Possible Trend Reversal; Analysis

The cryptocurrency market has been experiencing strong declines in recent days and the XRP has been following this trend, retracing almost 17% this week. Recently, an interesting chart pattern caught the attention of analysts: a possible double bottom forming on the XRP chart, suggesting a potential bullish reversal for Ripple's native cryptocurrency.

A double bottom is a bullish chart pattern that suggests a possible trend reversal from bearish to bullish. It forms when the price of an asset reaches a bottom, bounces back, reaches a second bottom at approximately the same level as the first, and then bounces back again.

Analyst Egrag Crypto noted in a recent technical analysis that XRP has a tendency to form double bottoms on multiple time frames. He suggests that the $1,63 level could be an interesting entry point for those looking to profit from this potential trend reversal. The analyst had initially predicted a significant increase in the price of XRP in February , based on Fibonacci projections. However, as March approaches, this prediction seems less likely.

“XRP – Double Bottoms on the Horizon: I know the negative reaction is coming from the XRP Family, but let’s focus on the charts: #XRP has a tendency to form double bottoms on almost every timeframe. The $1,63 level could be a great entry point for double bottoms. I had initially projected February as the month for a wave 3 liftoff, targeting the $6,4 Fib of 1,618 and even potential double-digit territory. However, time is running out as March approaches.” wrote .

The analyst expresses caution regarding the market, especially if Bitcoin (BTC) experiences a dip, which could negatively impact XRP. He also mentions the existence of a gap on the CME (Chicago Mercantile Exchange) between $77 and $80, which he believes will be filled before a major rally. At the moment, the analyst says he is not trading XRP, just waiting for opportunities. He mentions having a limit order at $1, a price he considers attractive for a significant purchase.

“We could see another dip, especially if BTC drops in the market, it will pull the market down with it. The CME gap is not filled yet (77k-80k) and I think it will be filled before we see a big rally to the new ATH. I am not trading XRP at the moment — not buying or selling. I am just waiting. If it hits $1, I have a limit order ready that could change my kids’ lives. I know some will say, “This is crazy!, This is crazy, This is blasphemy”, but I am just sharing my plan. If we don’t hit at least $6,4 in February, you will know where to buy,” he added.

At the time of publication, the price of XRP was quoted at US$2,54, up 3.2% in the last 24 hours.