XRP price could bounce before Ripple establishes directional bias
- XRP price is traversing inside a symmetrical triangle pattern, forecasting a 37% move.
- Investors can expect a 20% upswing before a breakout.
- A breakdown of the $1 support level will trigger a downswing.
XRP price is in an ambiguous technical formation that is close to a breakout. Investors can expect a bullish uptick in Ripple’s market value before a breakout.
XRP price at make or break point
XRP price has set up two lower highs and three higher lows since September 6. Connecting these swing points using trend lines reveals a symmetrical triangle. This technical formation forecasts a 37% move, obtained by measuring the distance between the first swing high and swing low to the breakout point.
Currently, the XRP price is hovering just above the lower boundary line of the symmetrical triangle. A bounce off this level will propel Ripple to the immediate resistance barrier at $1.12. Clearing this level will put XRP in front of $1.26 – a 20% ascent from $1.03.
Assuming XRP price can produce a daily close above $1.26, it will have established a directional bias and confirmed a breakout. In such a scenario, the symmetrical triangle setup forecasts a 37% upswing to $1.73, obtained by adding the distance between the first swing high and swing low to the breakout point.
Investors should await secondary confirmation, however, brought about if XRP price successfully flips the $1.31 to $1.41 supply zone into a support floor.
XRP/USDT 6-hour chart
While the bullish outlook is plausible, it is predicated on XRP price producing a daily close above the upper trend line at $1.26. Considering the bearish outlook of the crypto market, investors should tread with caution and head to the sidelines after the initial upthrust to $1.12 and $1.26.
A sell-off in BTC that pushes it down to $53,000 will likely cause XRP price to follow suit. In this situation, market participants can expect Ripple to head lower to the $1 psychological level.
A daily close below this barrier will confirm a bearish breakout and trigger a 37% downswing to $0.65.
While the theoretical target is grim, the three3-day demand zone, ranging from $0.70 to $0.78, is likely to cushion the incoming selling pressure and prevent a further downswing.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
