XRP Price Prediction: Inverse H&S Pattern Sets Stage for $3 Jump

XRP (XRP) has taken a hit in the past 24 hours as the market maintained its bearish tone after the Federal Reserve cut interest rates by 25 basis points.

The head of the U.S. central bank, Jerome Powell, emphasized that another cut in December was not necessarily a done deal, as the market initially expected.

“In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December,” Powell stressed.

He added: “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it.”

Cryptos plummeted after these comments, but market conditions remain favorable as a second cut was still executed as planned.

FedWatch December Rate Cut Probabilities – Source: CME Group

Data from FedWatch shows that analysts are now more skeptical about the Fed’s dot plot. Before Powell’s comments, the odds of a December cut surpassed 90%. They have now dipped below 70%.

This change of heart could have a near-term impact on crypto prices as the market adjusts its forecasts. However, in the specific case of XRP, the token is hitting a key support today upon confirming a bullish inverse head and shoulders pattern.

XRP Outperformed Its Peers in the Past Week

In the past week, XRP booked gains of 5.7%. It was the top-performing token during this period within the top 5. The launch of a massive $1 billion XRP treasury by Evernorth contributed to this price uptick.

Meanwhile, the only spot XRP exchange-traded fund (ETF) that has received the green light from the U.S. Securities and Exchange Commission (SEC), the REX-Osprey XRPR ETF, has surpassed the $100 million mark in assets under management already.

The first Solana spot ETF was approved this week and has already attracted more than $300 million in assets in just a few days amid its attractive 7% staking rewards.

The SEC could move to approve a similar vehicle for XRP shortly, and this would further boost the token’s price if the market’s appetite for this fund is strong.

XRP Needs to Stay Above $2.5 to Keep Its Inverse H&S in Play

Altcoins could be revived by this recent interest rate cut. However, the market’s uncertainty regarding the Fed’s actions could slow down the rally, meaning that XRP would take more time to hit key thresholds.

XRP/USD 4-Hour Chart (Coinbase) – Source: TradingView

Trading volumes for XRP have increased by 13% in the past 24 hours as the token retreats by 6%, meaning that selling pressure is accelerating.

At $2.5, XRP has hit a key support level from which it could bounce strongly in the next few hours. An inverse head and shoulders pattern has formed after the October 10 flash crash. This setup anticipates a big boost for the token as long as this key support holds.

The Relative Strength Index (RSI) does not support this view in the 4-hour chart at the time, as it is plummeting fast. With negative momentum accelerating, only a sudden change of heart or strong buying pressure at this level could change things for XRP.

A bullish breakout above $2.7 would confirm that the inverse H&S is playing out as expected, while a move below $2.5 would invalidate the pattern’s bullish bias.

If buyers show up to scoop up XRP at this level, a big move toward $3 could begin. This would mean a 20% upside potential in the near term.