The price of XRP has surged lately, reaching levels not seen in years with an increase of over 120% since the beginning of November. However, the price started to consolidate five days ago, since November 16, forming a triangle pattern on the 1-hour and 4-hour charts.
The top of this triangle pattern has consistently served as resistance, while the base is providing support.
The price is now reaching the tip of the triangle pattern, where it could be squeezed, leading to a potential breakout either bullish or bearish.
Based on price action, XRP’s breakout could be either bullish or bearish, as there is space on the chart for either move.
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Considerations for Bearish and Bullish Moves
After XRP broke out of a descending trendline pattern that had held the price since June (on the daily timeframe), the price continued to rise for a long time with little to no retracement. If the price breaks below the triangle, we could see a retracement towards the top of the broken descending channel at around $0.70.
On the other hand, a breakout above the triangle could trigger a bullish continuation, pushing the XRP price to new heights.
The relative strength index (RSI) is currently at 60 on the 4-hour chart, indicating that there is still room for some growth in the short term. This allows for the possibility of an increase in the event of a bullish breakout.
The MACD histogram is also showing slowing bearish strength, reflecting an increasing bullish market sentiment. Overall, the price must first break out of the triangle pattern to determine the next direction.
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