A cryptocurrency analyst has pointed out how XRP could see a breakout from a Symmetrical Triangle if it manages to close above $1.45.
XRP Has Potentially Been Trading Inside A Symmetrical Triangle
In a new post on X, analyst Ali Martinez has discussed a pattern that’s possibly forming in the daily chart of XRP. The pattern in question is a Symmetrical Triangle from technical analysis (TA), which is a type of triangular consolidation channel. It involves two converging trendlines: an upper resistance barrier and a lower support cushion.
The main feature of a Symmetrical Triangle is that the two trendlines approach each other at a roughly equal and opposite slope. Thus, as the asset trades inside such a channel, its shrinks to a midpoint.
Like other consolidation patterns in TA, one of the trendlines not holding up can imply a continuation of trend in that direction. This means that a surge above the resistance level can be a bullish signal, while a fall under support a bearish one.
Since the Symmetrical Triangle involves trendlines converging at the same angle, it doesn’t have a bias in either direction. This suggests that a breakout from the pattern may be equally probable up and down.
The Symmetrical Triangle isn’t the only triangle pattern that exists in TA. Other popular types include the Ascending and Descending variations. In the former, the upper trendline is parallel to the time-axis, while in the latter, the bottom level is flat instead.
Now, here is the chart shared by Martinez that shows the Symmetrical Triangle that the 1-day price of XRP has been trading inside over the last few months:
As displayed in the above graph, the daily XRP price has already made multiple retests of both the upper and lower trendlines of this Symmetrical Triangle, but so far, it hasn’t been able to find any break.
Recently, the cryptocurrency has been surging, so it’s possible that the next retest could be of the upper level. If the asset manages to break past resistance this time, it could naturally indicate the continuation of a bullish trend.
Based on the height of the triangle, the analyst has noted that a close above the $1.45 resistance mark could open the door to $1.80 for the coin. From the current exchange rate, a run to this level would mean an increase of more than 26%.
From the chart, it’s visible that XRP is currently nearing in on the apex of the triangle. In this region, the range becomes so tight that retests turn more frequent, which also makes a breakout more likely to occur. Given this, it now remains to be seen when the asset will escape the triangle and in what direction.
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At the time of writing, XRP is floating around $1.426, up 3.7% in the last seven days.
