Analyst World Of Charts has noted that XRP is consolidating within a multi-year symmetrical triangle pattern, which could lead to a major breakout. In a tweet, he highlighted that XRP is approaching a crucial level, with the potential for a price surge to new ATH in the coming months.
Besides, this breakout is supported by technical patterns and the resolution of the SEC case, which has reduced regulatory uncertainty around XRP.
What you'll learn 👉
XRP’s Symmetrical Triangle Formation
Looking at the chart by World Of Charts, the outlined pattern is visible on XRP’s chart starting from early 2021. The pattern is formed by converging trendlines: The first line drawn is the upper line referred to as the lower trendline which joins the series of lower highs, the second line drawn joins the higher lows and is known as the upper trendline.
This narrowing of prices usually indicates that a consolidation is about to take place, that is, a new direction in price. In most occasions this brings about a breakout once the price approaches the top part of the triangle.
XRP’s price action is nearing the upper boundary of the triangle. This indicates the possibility of an imminent breakout. As the price approaches the apex, the likelihood of a strong breakout increases.
Breakout Potential and Target Levels
The pattern suggests that XRP is poised for a major breakout. Based on the analysis, if XRP breaks above the upper trendline, the price could rally toward a new ATH.
The breakout target is projected on the chart, represents a potential 302% increase from the current price of around $0.56. Moreover, this percentage rise aligns with previous price peaks, reinforcing the possibility of XRP surpassing its previous ATH.
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Impact of the SEC Case
World Of Charts points out that the SEC case, which has weighed heavily on XRP’s price in recent years, may now act as a bullish catalyst. As the SEC case resolution and its implications have been fully priced in, XRP may witness a breakout driven by both fundamental and technical aspects.
Since the mid of 2021, XRP has had consolidation inside this symmetrical triangle. Additionally, this protracted consolidation phase frequently precedes a price shift. There is an increase in the likelihood of a breakout as the price approaches the triangle’s peak.
Moreover, the stronger the breakout will be, the longer the consolidation lasts. Hence, this makes XRP an important asset to keep an eye on in the upcoming months.
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