XRP Forms Double Bottom Near $1 This Summer, Will It Hold or Break Down?

Double Bottom Confirmation

Key Takeaways

XRP's double bottom pattern near the $1 mark this summer sparked a 46% surge to $1.70, before pulling back to around $1.41 by October 10. The neckline between $1.17 and $1.20 is critical support.

Pattern Analysis

A double bottom is a chart pattern that looks like the letter “W.” In this pattern, the price drops to a certain level, bounces back, dips again to a similar level, and then holds steady at that low. Traders see this second hold as a signal that buyers are showing support, having returned to the same price point twice. This pattern is confirmed when price closes above the highest point between the two lows, known as the neckline.

Potential Targets

A common technique is to add the pattern’s depth—about 18 cents—to the neckline, suggesting a potential target around $1.37. XRP even surpassed this target, reaching $1.70 on August 22. However, a confirmed double bottom typically signals bullish sentiment, and XRP has pulled back about 17% from its August 22 high of $1.70.

Current Situation

Traders are now watching the $1.17 to $1.20 zone—about 15% to 17% below the October 10 price—where the previous neckline intersects a 78.6% retracement of XRP’s rise from $0.50 to $3.65. A pullback to a broken neckline, known as a retest, is not uncommon. If buyers re-enter at this level, the pattern remains valid. On the other hand, a close below about $1.17 could weaken the breakout and bring the summer lows near $1—about 29% lower than the October 10 price—back into focus.