A crypto analyst has pointed out how a Symmetrical Triangle forming on the 12-hour XRP price could hint at a notable move ahead for the asset.
XRP Is Potentially Moving Inside A Symmetrical Triangle
In a new post on X, analyst Ali Martinez has shared a technical analysis (TA) pattern that XRP has recently been consolidating inside. The pattern in question is a “Symmetrical Triangle,” which involves a consolidation channel that, as its name suggests, is shaped like a triangle. It involves two converging trendlines, with the upper one acting as a source of resistance and the lower one that of support.
The main feature of a Symmetrical Triangle that sets it apart from other triangular channels is that its trendlines approach each other at a roughly equal and opposite angle. This means that as the asset travels inside this channel, its range shrinks down to a mid-point.
Like with other TA patterns, breaks out of triangles also imply a possible continuation of trend in that direction. That is, a surge above the pattern can be a bullish sign, while a drop under it a bearish one.
Now, here is the chart shared by Martinez that shows the Symmetrical Triangle that the 12-hour XRP price has been trading inside for the last couple of months:
As displayed in the above graph, the 12-hour XRP price briefly retested the upper level of the Symmetrical Triangle last week, but the coin ended up getting rejected. Since then, it has declined toward the midway line of the triangle.
From this position, it’s hard to say which trendline the cryptocurrency will retest next, but it’s possible that the next few retests could end in a breakout, based on the asset’s advance within the channel. It’s visible in the chart that XRP isn’t far from the apex of the triangle, meaning that its range within the triangle has significantly tightened. Generally, a tighter range implies a higher chance of a breakout.
As for what kind of move a breakout from this Symmetrical Triangle can lead to, the analyst has highlighted a potential 35% target based on the height of the channel. It now remains to be seen which way the price will escape from this triangle and whether a move of a scale anything like this will follow.
In some other news, XRP saw its SuperTrend flip bullish on the daily timeframe recently, as Martinez has pointed out in another X post.
This is the first time since January that the indicator has given this signal. “After months of “sell” pressure, we are officially seeing a buy signal that anticipates a major comeback in XRP’s trend,” explained the analyst.
XRP Price
XRP surged to $1.50 on Friday, but the cryptocurrency has since declined back to the $1.41 mark.
Credit: Source link
