XRP Poised for 16% Move on Triangle Breakout

Source: CryptoNewsNet Original Title: XRP Poised for 16% Move on Triangle Breakout Original Link:

Symmetrical Triangle Pattern Analysis

The price of the XRP cryptocurrency could be on the verge of a 16% move if the symmetrical triangle pattern ends up playing out.

The chart shows the pattern for XRP/USDT Perpetual Contract on a one-hour timeframe.

A symmetrical triangle is a continuation pattern in technical analysis. During such periods, the price tends to consolidate before continuing the prior trend (although it should be noted that it can also lead to a reversal).

It is formed by two converging trendlines: a downward-sloping upper resistance line and an upward-sloping lower support line.

The price action shows a period of decreasing volatility. The swings are becoming noticeably smaller, squeezing the price towards the apex of the triangle.

So far, the market is in a phase of indecision, meaning neither buyers nor sellers are able to take control.

If the price breaks out from the current price of $2.05, a 16% increase would project a target price of roughly $2.4.

Market Dynamics

The launch of spot XRP exchange-traded funds has been a groundbreaking milestone for the XRP token, drawing significant institutional inflows that have already exceeded $900 million across multiple products.

Yet, this enthusiasm failed to translate into much-needed price recovery. Aggressive selling from large holders threw a wrench in the works for the bulls.

Bitcoin’s plunge below $90,000 also triggered widespread deleveraging across altcoins, adding pressure to XRP’s price action.