By Alicia Maher
- XRP traverses within a symmetrical triangle formation, projecting a 37% price move.
- Market players may expect a 20% surge before XRP breaks out.
- Breaching the support level at $1 will catalyze downtrends.
Ripple (XRP) price moves in an ambiguous technical pattern that suggests an incoming breakout. Market participants can wait for a bullish upswing in the token’s market value before breakout surfaces.
XRP at a Break or Make Point
XRP has had its price actions printing three higher lows and two lower highs since 6 September. Using trend lines to connect the swing points forms a symmetrical triangle. This technical pattern predicts a 37% price move, determined by the distance between the initial swings high and low added to the breakout level.
For now, XRP has its price hovering beyond the symmetrical triangle’s bottom boundary line. A bounce from this area can propel the altcoin towards the nearest resistance barrier near $1.12. Overpowering this level will have XRP at $1.26, translating to a 20% upsurge from $1.03.
If the upcoming price movements see Ripple’s XRP producing a daily close beyond $1.26, the token will confirm a breakout, establishing a directional bias. In such cases, the symmetrical triangle pattern predicts a 37% upsurge towards $1.73.
However, investors may need to wait for secondary confirmation, showcasing of XRP succeeds in flipping the supply zone at $1.31 – $1.42 into support.
Though the bullish picture appears attractive, it will come if XRP produces a daily close past the top trend-line at $1.26. As the crypto space sustains bearishness, investors should be cautious. A Bitcoin sell-off to the $53,000 lows can trigger losses in XRP. Keep in mind that BTC has been plummeting since its ATH of around $69,000. While writing this content, the leading crypto trades in a bullish bias at $56,820. Further drops by Bitcoin can see Ripple plunging to the psychological level at $1.
A daily close under this level will display bearishness and catalyze a 37% fall towards $0.65. Though the theoretical aim is uninviting, the three-day demand territory in the $0.70 – $0.78 range will likely cushion the upcoming selling momentum and prevent further plummets.