XRP is nearing the edge of the triangle pattern
The price of Ripple’s token has been steadily rising, following an upward trendline since the start of 2023. It recently reached a new high for the year, reaching $0.95 in July.
Alongside this rise, XRP broke through a long-term resistance area that had been in place since September 2022.
However, XRP has since been declining within a descending resistance line, with several bounces off this line (represented by red icons).
The combination of these trendlines forms a symmetrical triangle pattern, which is considered a neutral pattern. XRP is rapidly approaching the boundary of this pattern and is expected to break out in one direction soon.
Source: TradingView
The weekly relative strength index (RSI) does not provide much insight into the trend direction, as it currently sits at the neutral level of 50.
XRP Forecast: Anticipating a Rebound?
The daily timeframe presents a bearish forecast. XRP is currently within a short-term symmetrical triangle pattern that has been on the charts since November 2023, and it is now breaking below its support level at $0.55.
The daily RSI is declining and is below 50. While there is a possibility of a bullish divergence forming, it has not yet been confirmed.
Should XRP close the day below the $0.55 support level, it could potentially drop by 15% to the next nearest support at $0.46. However, cryptocurrency analyst Ben Armstrong remains optimistic and suggests that a price pump for XRP may be imminent. He stated:
“Call me crazy, but I believe $XRP will start to rise by the end of Monday.”
Source: TradingView
Despite this bearish outlook, a rebound in Ripple towards $0.55 could trigger a 10% increase towards the descending resistance line at $0.60.
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