Ripple Price Could Soon Launch to $1.68 as Key Technical Pattern Matures
- Ripple forms an ascending triangle pattern ahead of a potentially massive 60% breakout.
- A gradual recovery in network growth on-chain metric adds credibility to the expected liftoff.
Ripple briefly stepped above $0.9, following gains from the recent support at $0.78. However, the bullish leg did not stretch further than $0.92, perhaps due to the 50 Simple Moving Average (SMA) resistance in conjunction with the 100 SMA.
At the time of writing, XRP teeters at $0.87 and holds within the confines of an ascending triangle. If this chart pattern matures, Ripple may eventually rally 60% to trade around $1.68.
Ripple deals with short-term overhead pressure ahead of massive breakout
Since the drop to $0.65 in May, Ripple has formed a higher low pattern. On the upside, many failed attempts to make progress above $1 have resulted in a horizontal trend line resistance. This price action has led to the formation of a critical ascending triangle pattern.
Ascending triangles are known bullish patterns in technical analysis. As the price forms a higher low sequence, it signifies a growing bullish grip. On the upside, the horizontal resistance (x-axis) shows the unwavering strength of the bears.
However, a break is eventually expected on the x-axis. As the trend lines meet, Ripple will tend to consolidate, a situation characterized by low trading volumes. Cracking the x-axis resistance paves the way for a triangle breakout, with an exact target measured from the highest to the lowest points. Hence, the 60% potential upswing to $1.68.
XRP/USD four-hour chart
The network growth on-chain metric by Santiment, a leading behavioural analytics platform, shows a gradual increase in the number of addresses joining the XRP Ledger. Before the current upturn in the metric, the addresses flopped from a 30-day high of 7,920 to a low of 2,400.
XRP/USD network growth
As the addresses created on the network everyday increase, Ripple is anticipated to gain traction both in adoption and token value growth. Therefore, improving network growth is a noteworthy bullish signal.
Looking at the other side of the picture
A death cross pattern has recently formed on the four-hour chart. This pattern usually points toward a continuing bearish trend. It develops when a short-term average crosses below a longer-term moving average.
For example, Ripple’s chart shows the 50 SMA crossing beneath the 100 SMA. Therefore, bears will likely keep controlling the price action until bulls secure formidable support, where they can launch a notable mission to levels beyond $1.