TLDR
- XRP price currently sits around $2.88, trading within a symmetrical triangle pattern
- Strong buyer support exists in the $2.70-$2.80 zone, creating a foundation for potential upward movement
- Technical analysis suggests a potential target of $4.20 if resistance breaks
- Fresh decline risks grow as price struggles below the $2.90 resistance level
- Multiple catalysts including institutional adoption and improving market sentiment could fuel a rally
XRP (XRP) is at a critical technical juncture that could determine its short-term price direction. Currently trading around $2.88, the cryptocurrency has been confined within a symmetrical triangle pattern for several weeks, with recent price action suggesting a decisive move may be imminent.
The digital asset has established a solid support foundation in the $2.70-$2.80 range, where buyers have consistently stepped in to prevent further declines. This defensive action at the lower trendline has been observed multiple times in recent trading sessions.
While support has remained firm, XRP faces resistance from a descending trendline that has capped recent rally attempts. This classic triangle formation typically resolves in a breakout, with analysts like JackTheRippler suggesting $3.50 as an initial target if the resistance breaks.
Based on the measured move projection of the triangle pattern, a more ambitious target of $4.20 could be achievable should bulls successfully push through current resistance levels.
However, not all technical indicators paint a bullish picture. XRP recently failed to maintain position above the $3.00 level and started a fresh decline, mirroring movements seen in Bitcoin and Ethereum markets.
The bears pushed the price below several support levels, reaching a low near $2.678 before a recovery wave began. Despite this bounce, sellers remain active near the $2.90 resistance zone.
Technical Outlook
Current technical analysis shows XRP trading below both the $2.90 level and the 100-hourly Simple Moving Average. A bearish trend line has formed with resistance at $2.90 on the hourly chart.
The hourly MACD is gaining momentum in the bearish zone, while the Relative Strength Index (RSI) sits below the 50 level, suggesting bearish pressure remains present.
Major support levels are established at $2.780 and $2.7150, while resistance can be found at $2.90 and $2.950. A clear move above the $2.90 resistance might push the price toward $3.00, with the next major hurdle near $3.12.
On the downside, if XRP fails to clear the $2.90 resistance, it could continue declining toward $2.780. Breaking below $2.7150 might accelerate the downward momentum toward $2.65, with the next major support at $2.60.
Potential Catalysts
Several factors could influence XRP’s price trajectory in the coming weeks. Ripple’s ongoing push into institutional markets through central bank digital currencies and cross-border payment solutions continues to gain traction.
The broader cryptocurrency market sentiment appears to be improving, which could provide additional support if regulatory clarity emerges from U.S. authorities.
On-chain activity metrics also show promising signs, with transaction volumes increasing in recent days, potentially supporting a bullish narrative for the token.
The most recent price action shows XRP attempting to recover from its local bottom of $2.678, though buyers face stiff resistance at the $2.90 level, which coincides with the 50% Fibonacci retracement level of the recent decline from $3.138.
The digital asset will need to overcome this resistance to maintain bullish momentum and target higher levels. Failure to do so could result in another leg down toward support at $2.780 or lower.
XRP now sits at a critical decision point that could determine its price direction in the days ahead.
The post XRP (XRP) Price: Triangle Pattern Completion May Trigger Move Toward $4.20 appeared first on Blockonomi.
Source: https://blockonomi.com/xrp-xrp-price-triangle-pattern-completion-may-trigger-move-toward-4-20/