- XRP is consolidating after rising more than 230% to make a new yearly high of $0.78.
- Despite the lackluster price action seen in the past week, new analysis suggests that this cryptocurrency has more gas in the tank.
- Breaking above the $0.65 resistance barrier could result in a 40% breakout.
Ripple’s XRP has paused after a massive breakout to new yearly highs. While prices remain dormant, the pressure is slowly rising for another leg up.
XRP Seems Poised for Further Gains
XRP has been contained within a narrow trading range for the past week.
Ever since the cross-border remittances token shot up by more than 230% to make a new yearly high of $0.78, momentum has been building up for the next significant move.
The lackluster price action seen recently appears to have formed a symmetrical triangle within the 4-hour chart. This technical formation was created as a direct result of XRP’s price movement, where two trendlines that converge can be drawn in different directions.
In an ascending trend, the development of a symmetrical triangle can be seen as an optimistic signal and usually leads to further gains.
By measuring the distance between the triangle’s widest range and adding it to the breakout point, this technical pattern estimates a potential upside target of more than 40%. Moving past the overhead resistance at $0.65 could trigger a spike in the buying pressure behind XRP that sends it towards $0.92.
It is worth mentioning that the bullish outlook will prevail as long as the international settlements token continues to hold above the 50-four-hour moving average within the same time frame.
Failing to do so would be catastrophic for the XRP bulls because it would lead to a steep correction. Indeed, moving past this area of support could be followed by panic selling among investors due to the extreme greed in the cryptocurrency market.
Under such circumstances, XRP may drop by more than 20% to find support around the 100- or even the 200-four-moving average. These crucial demand barriers sit at $0.48 and $0.37, respectively.