Ripple’s (XRP) market performance has been bad over the last day. This token’s price saw a 2.25% dip while its trading volume has increased by 9.89%. At publication, XRP is trading at $0.575.
Crypto analyst Mikybull shared a chart today with his followers, and he stated that analysts are referring to his chart as a technical time bomb waiting for an explosion. He added that it’s looking like the 2017 kind of PA formation.
What you'll learn 👉
XRP Chart Analysis: Symmetrical Triangle and Bollinger Bands
The chart shows XRP forming a symmetrical triangle on the monthly timeframe. This pattern indicates consolidation, with the price narrowing into tighter ranges over time.
Historically, symmetrical triangles are known to come before sharp price movements, either up or down. In XRP’s case, the pattern is reminiscent of its 2017 consolidation phase before its explosive rally to all-time highs.
Moreover, the chart noted that the token is hovering near a key decision point. If XRP follows its historical behavior, this consolidation phase could soon give way to a bullish breakout, pushing prices toward key psychological levels.
Image Source: X/MikybullCrypto
The chart also revealed Bollinger Bands, indicating that volatility has decreased as XRP continues to trade sideways. The contraction of these bands often signals that a strong move may be on the horizon. The last time XRP saw such volatility contraction, it led to a significant price surge.
Furthermore, as XRP approaches the edge of this pattern, traders are closely watching for any signs of a breakout, which could indicate the start of another rally.
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Show more +XRP’s Volume Decline Points to Price Build-Up
Volume analysis also plays a key role in this setup. The chart shows a steady decline in trading volume, a typical precursor to large price movements.
Moreover, lower volumes during consolidation often indicate that market participants are waiting for a clear signal before re-entering the market. This scenario adds to the idea of XRP being a “time bomb,” where a sharp increase in volume could fuel a substantial price move.
Finally, as analysts draw comparisons to XRP’s 2017 price action, expectations are growing that the token could once again experience a strong rally. If XRP manages to break above key resistance levels, it could aim for price targets above $1 and beyond.
Read Also: Bitcoin Price Pumps Following Big Economic News
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