By Nathan Ferguson
Briefly –
- XRP witnesses its price consolidating inside a tight range.
- A daily candle-close out of the $1.17 to $1.10 area will determine the token’s incoming price movements.
- Interestingly, the last few days have seen some whales exiting the XRP network.
As another monthly close nears, it seems like most crypto experience volatility resurgence. As much as XRP’s price remains stagnant, technical indicators depict the possible substantial price movements.
XRP Consolidating Before Breakout
XRP extends its consolidation phase inside a tight range that narrows as time goes. On the daily price chart, the 6th ranked crypto has its price actions in the past 20 days, creating a symmetrical triangle. The swing highs form a descending trend-line, while the swing lows lead to an uphill trend-line.
For now, XRP nears the triangle’s upper side, suggesting that massive volatility may dominate the token. Adding the breakout point to the technical pattern’s height shows a 31.7% move towards either direction. That can mean magnified gains or massive losses.
Meanwhile, the token’s next moves rely on the daily candle close out of the $1.17 – $1.10 range. Increased buying pressure to crack the upside resistance might see XRP exploding to $1.55. However, breaching the support level at $1.10 will have the altcoin correcting to $0.75.
Regardless of the ambiguous picture exhibited by the symmetrical triangle, Santiment, a behavior analytic site, indicates whales taking profits. That follows the recent rally that the total crypto market witnessed.
Meanwhile, over the last 72 hours, the addresses with over 10 million Ripple’s tokens dropped by 1.5%. Around five whales redistributed their XRP or left the platform in such a short time.
The sudden drop of whales on the XRP network is an ugly development for extended upside trends. Keep in mind that these large investors hold XRP worth over $11 million. Maximized selling pressure might push the alt beneath the $1.10 support, thus a 31.7% price retracement.
Remember, only a candle close out of the price range at $1.17 – $1.10 will tell XRP’s next moves.
Which path do you think XRP will take? You can comment in the section below.