Crypto market participants are paying attention to XRP. There has been a continuous bounce between trend lines, forming what analysts call a symmetrical triangle pattern. As a result of a pattern traced as far back as 2018, this digital asset could be set for a big move — but how?
From eagle-eyed market sentinels who predict that XRP may soon break out to those who are walking on eggshells, the crypto community is overrun with predictions. The pattern shows a fight between the buyers and sellers, which may suggest it is poised to explode up—or crash down—in value once that fight concludes.
XRP Technical Indicators: A Mixed Bag
The price of XRP has been steadily at the $0.57 mark, considered to be a key support level. Historically, this level has held pretty well and kept the coin from dipping too low.
Recently, trading volume picked up, which is more often than not a sign that something big is brewing. If XRP breaks above the triangle’s upper trend line, then control might be taken over by the bulls, pushing up the price to new highs.
#XRP Breakout Incomin
XRP price has been consolidating within a symmetrical triangle since 2018 signaling a potential breakout With strong support around $0.38 and increasing volume 2024 could be the year for a significant upward move Keep an eye on XRP big things could be ahead pic.twitter.com/5MsehzASG6
— xaif.03
(@xaif_03) August 10, 2024
While some, like analyst Xaif.03, expect a rise to $100, that is a bit far-fetching at this point without more concrete evidence. But then, these people can see better than ordinary souls.
Yet all isn’t rosy. The Relative Strength Index comes in at 54, right smack in the middle of the scale. This reading does indicate that neither an oversold nor overbought market condition exists, therefore keeping the door open to either a rally or more consolidation.
The Bullish Case For XRP
Notwithstanding some level of uncertainty involved, some analysts still stand on the bullish side. Noted crypto space figure Alan Santana believes that XRP is currently undergoing an accumulation phase. The token, according to him, follows a bear market with such a phase before drastically spiking in price exponentially.
XRP Pre-2025 Bull-Market Accumulation Zone & Strategy
My dear friends…
Accumulation for XRP, when considering the bigger picture, has been on-going since June 2022. The 2023 bullish wave was just a minor wave compared to bull-market proportions. “Wave 1” of a much bigger… pic.twitter.com/15LWLOxPcp
— Alan Santana (@lamatrades1111) August 10, 2024
Based on his prognosis, if the XRP 2022 bear market is followed by its recovery year in 2023, it paves the way for accumulation in 2024. This happened once; thus, we might then expect a strong bull run for XRP in 2024, or the year after that. Of course, crypto markets are unpredictable, and past performance does not always warranty results in the future.
Skeptics And The Path Forward
Not everyone, however, is convinced that XRP is in the midst of a breakout. Some analysts have cautioned that while the symmetrical triangle pattern is powerful, it doesn’t always work. The market could easily move sideways for months, which could frustrate traders.
XRP Technical Analysis on a 3-Day Timeframe
In our previous analysis of XRP, we observed that the 50EMA and the 0.618 FIB levels were acting as resistance. The price eventually broke above these levels and reclaimed the resistance trendline at $0.63.
Currently, XRP is trending… https://t.co/7qvnJhiZuE pic.twitter.com/AH5AddwVTu
— Cryptorphic (@Cryptorphic1) August 9, 2024
Another analyst, Cryptorphic has also reiterated some of the resistance levels that the altcoin need to break out so as not fall further down in value. He noted the support around $0.41-$0.42 has had a pretty solid hold, however without significant news stacking in favor of XRP working higher will be difficult to come by at this time.
Featured image from Fortune, chart from TradingView