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An analyst has pointed out how XRP could be targeting a breakout toward $15 if this pattern forming in its 1-week price chart is real.
XRP May Have Broken Out Of A Symmetrial Triangle
In a new post on X, analyst Ali Martinez has discussed about a long-term consolidation pattern that XRP may have been traveling inside until recently.
The formation in question is a Symmetrical Triangle from technical analysis (TA), which, as its name suggests, is shaped like a triangle. The pattern involves two trendlines within which the price consolidates, with a core feature being that these two levels approach each other at a roughly equal and opposite slope (hence the ‘symmetrical’ in the name).
The upper line of the triangle is made by joining together lower highs in the asset and the lower one by connecting higher lows. Just like with other consolidation patterns in TA, the former is likely to provide resistance and the latter support.
As the consolidation of the cryptocurrency continues inside the triangle, it gets narrower since the trendlines approach convergence. A break out of the pattern starts to become more likely as this happens.
When the breakout occurs above the upper trendline, the coin could be assumed to be heading toward a bullish outcome. On the other hand, a fall below the lower level can be considered a bearish signal.
The Symmetrical Triangle is just one of the triangle patterns that exist in TA. Two other popular types include the Ascending and Descending Triangles, which occur when one of the trendlines is parallel to the time-axis (the upper one in case of the former and the lower for the latter).
Now, here is the chart shared by Martinez, that highlights a potential Symmetrical Triangle that the weekly price of XRP had potentially been stuck inside during the last few years:
As displayed in the above graph, the weekly price of XRP may have been following a long-term Symmetrical Triangle pattern between 2018 and November of last year.
As mentioned before, a breakout becomes probable as the asset approaches the apex of the triangle and this is exactly what appears to have happened with the cryptocurrency as its price found a sharp surge above the triangle in November.
“If this is a symmetrical triangle, XRP has broken out and is targeting $15!” notes the analyst. The target is based on the fact that breaks out of the pattern are usually of a similar scale as the height of the triangle (the vertical line).
From the current price of the coin, a rally to this level would imply a rally of a whopping 517%. It now remains to be seen whether the pattern would hold for XRP or not.
XRP Price
At the time of writing, XRP is floating around the $2.43 level, up more than 1% over the last 24 hours.
