XRP price eyes 25% profit; have Ripple bulls made a comeback?

XRP price has formed a bottom reversal setup suggesting the possibility of an explosive move in favor of the bulls. Additionally, Ripple has already broken the pattern, suggesting the start of this rally. Interested investors should pay close attention to the retest of a critical support level to take advantage of the inbound move.

Ripple bulls back in the fray

XRP price set up an inverted head and shoulders pattern suggesting the start of an uptrend. This technical formation contains three valleys of varying depths. The central dip is usually deeper than the lateral and is called the head. The shorter valleys on either side of the head are called shoulders.

Connecting the tops of these valleys results in the formation of a neckline, which is helpful in determining the breakout.

The target of 25% for this setup is obtained by adding the distance between the neckline and the lowest point of the head. Adding this measurement to the breakout point yields a $1 target. Interestingly, Ripple already broke the neckline on March 19, showing the possibility of continuation.

If the neckline retest holds, investors or sideline buyers could start buying the dips and expect the remittance token to collect 25% and retest the $1 psychological level.

Source: TradingView, XRP/USDT 4 Hour Chart

The bullish position put forth from a technical perspective is supported by the supply distribution metric. This index tracks the XRP wallets that are segregated based on the number of tokens held.

This on-chain indicator shows that whales with over 10,000,000 XRP tokens have accumulated. The number of wallets in this category increased from 317 to 335.

In total, 18 new whales have been added in the past month, painting their intentions and optimistic expectations of the XRP price. Therefore, market participants can expect the remittance token to see a significant jump in the coming days or weeks.

XRP Delivery Distribution Chart

Regardless of the bullish outlook, sometimes the breakout fails to hold the retest and slides down. Such a prospect is possible and could threaten the optimistic outlook. However, if bears push XRP price to produce a lower low below the right shoulder ($0.740), the bullish position will be voided.

In such a case, investors can expect Ripple price to move lower and find support around $0.702. Here, buyers can try the uptrend again despite the invalidity of the inverted head and shoulder setup.

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