Ripple Price Analysis: XRP Prepares for 140% Breakout as the Profit or Loss Ratio Recovers
- Ripple prints a symmetrical triangle on the daily chart, likely to catapult the price to $4.
- XRP renews the uptrend after holding support at $1.3.
Ripple recently lifted off support at $1.3 following a significant downswing in the price of Bitcoin. The largest cryptocurrency’s instability affected the majority of the crypto assets. However, XRP impressively weathered down the declines, aided by the buyer congestion at $1.3.
A recovery started on Monday, allowing bulls to focus on launching toward $2. As discussed, XRP’s price action has been limited in a range stretching from $1.2 to $1.6. Therefore, as the uptrend continues, traders should expect delays at this level.
Ripple consolidation could culminate in a massive upswing
The daily chart shines a light on the ongoing consolidation, forming a symmetrical triangle. This pattern is both bullish and bearish biased but is molded using two trend lines, connecting a series of troughs and peaks.
Note that the trend lines converge at a relatively equal point. As the lines meet, a consolidation period takes precedence. However, a breakout comes into the picture before the lines converge. Trading above the upper trend line results in a massive liftoff measured from the triangle’s highest to lowest points.
Symmetrical triangle breakout has a precise target, as highlighted on the chart. Ripple may embark on a barrier-shattering exercise if the symmetrical triangle is validated. At the time of writing, the cross-border money transfer token trades at $1.52. A break past $1.6 is critical to authenticating the upswing to $4.
XRP/USD four-hour chart
The short-term technical indicators will likely flip bullish in the coming sessions. The Moving Average Convergence Divergence (MACD) holds above the mean line (0.00). The bullish outlook will become apparent if the MACD line (blue) crosses above the signal line.
Similarly, the Relative Strength Index (RSI) shows that the buyers have the upper hand. As the bullish grip tightens, Ripple price gradually hits higher levels, adding credence to the narrative.
The market value realized value (MVRV) shows that Ripple is ready for a steady rise. According to Santiment, the profit or losses ratio is back in a recovery mode. In other words, selling pressure has gone down, and more investors are entering the market, anticipating a significant increase in value.
Ripple MVRV model
Looking at the other side of the fence
As mentioned, the symmetrical triangle also has a bearish impulse. If the price fails to rally above $1.6 and overhead pressure rises, trading under the lower trendline would be a massive bearish signal and may market the beginning of an extended downtrend.
However, support at $1.3 and $1.2 remains key to the uptrend, however gradual. If lost, XRP will be forced to seek refuge toward the primary anchor at $0.85.