Ripple Price Forecast: XRP Depends on This Crucial Triangle Pattern For the Leg Up to $1.44
- Ripple sticks to consolidation ahead of a possible breakout to $1.44.
- The ascending triangle pattern on the four-hour chart eyes a 38% breakout.
- Increased development activity on the XRP Ledger is a bullish signal.
Ripple gained significant ground from last week’s drop to $0.8. Initially, the uptrend was drastic, allowing bulls to step above $1, but a barrier at $1.1 remains a formidable challenge. Meanwhile, XRP has settled slightly above $1, ushering in a period of consolidation.
The immediate upside is capped by the 100 Simple Moving Average (SMA) on the four-hour chart. A break above this level is needed to affirm the bulls’ ability to sustain the uptrend. However, it is essential to keep in mind the sideways trading, which might extend into the weekend session.
Ripple nears key breakout point
The 100 SMA resistance hinders XRP from coming into contact with the x-axis of the ascending triangle on the four-hour chart. This is a bullish technical pattern that often forms in an uptrend. However, ascending triangles have positive impulses wherever they appear.
Two trend lines create the ascending triangle, linking the relatively equal peaks and the rising troughs. The higher low pattern reveals that bulls are getting more aggressive than the bears. The pattern completes with the price slicing through the x-axis before the lines meet.
Triangles generally have precise breakouts measured from the highest to the lowest points. For instance, XRP could swing 38% higher if bulls overcome the horizontal hurdle (x-axis), thereby testing price levels around $1.44.
XRP/USD four-hour chart
According to Santiment, development on the XRP Ledger has been rising since May 25 after XRP plunged to $0.65. The on-chain metric reveals a correlation between development activities and price performance. A surge in this metric tends to pull the price higher, perhaps due to increasing adoption and demand for XRP. Therefore, we expect the price to fall in line and start catching up with the current activity at 1.61.
Ripple Development activity chart
Looking at the other side of the picture
It is worth noting that a four-hour close under the 100 SMA could further delay the ascending triangle breakout. Similarly, bears will be encouraged to increase their activities amid a weary bullish camp. Therefore, losses may stretch below the 50 SMA and conceivably retest support levels at $0.9 and $0.8.