An analyst has pointed out how XRP could be set up for a potential 10% move based on a technical analysis (TA) pattern in its 15 minutes price. XRP Has Possibly Been Trading Inside A Symmetrical Triangle In a new post on X, analyst Ali Martinez has talked about a Triangle that XRP has been trading inside on the 15-minute timeframe. A “Triangle” is a TA pattern that appears whenever an asset consolidates between two converging trendlines. Related Reading: Bitcoin Supply Overhang: 6.6 Million BTC Bought Above Current Price The upper line of the pattern tends to be a source of resistance, while the lower one that of support. An escape beyond either boundary usually signals a breakout in that direction. Triangles can be of a few different types based on the orientation of their trendlines. Triangles that have one line parallel to the time-axis fall in either the Ascending or Descending categories. The pattern is an Ascending Triangle when the upper level is the parallel line, while it’s a Descending Triangle if the consolidation range shrinks to a downside. When both trendlines approach each other at a roughly equal and opposite slope, the pattern formed is known as a Symmetrical Triangle. This is the case that’s relevant in the current discussion. In a Symmetrical Triangle, the consolidation shrinks in an exactly sideways manner. As an asset moves through this pattern, its range gets narrower until it compresses down to a single point around the midline. Now, here is the chart shared by the analyst that shows the Symmetrical Triangle that the 15-minute price of XRP has been traveling inside recently: As displayed in the above graph, the 15-minute XRP price retested the lower level of the Symmetrical Triangle on Christmas and found support at it. This could be a potential sign that the channel is holding for now. As mentioned earlier, any level of a Triangle not holding up can signal a continuation of trend in that direction. This means that a surge above the channel can be a bullish sign, while a fall under it a bearish one. For Ascending and Descending Triangles, it’s usually considered that they have a direction bias attached to them, with Ascending Triangles being more likely to lead to bullish breakouts, while Descending Triangles to bearish breakdowns. Related Reading: Bitcoin Extreme Fear Streak Extends To 13 Days On Christmas In Symmetrical Triangles, though, the two lines are roughly identical, just mirrored, so breakouts could be equally probable in both directions. As such, it’s hard to say where XRP might escape from this Symmetrical Triangle. As for what might be the magnitude of the move a breakout could lead to, the analyst has noted it could potentially be of 10%. This is based on the fact that breakouts from consolidation channels are considered to end up being of the same length as the distance between the trendlines. XRP Price At the time of writing, XRP is trading around $1.84, down 3.3% over the last week. Featured image from Dall-E, chart from TradingView.com
XRP has been declining over the past few days, making a retest of this Descending Triangle’s lower boundary possible, according to an analyst. XRP Has Been Moving Inside A Descending Triangle Recently In a new post on X, analyst Ali Martinez has talked about where XRP may be heading next, based on a Descending Triangle. This technical analysis (TA) pattern forms when an asset’s price witnesses consolidation between two converging trendlines. The main feature of the pattern is that its lower trendline is parallel to the time-axis. This level acts as a support boundary, while the upper level, which is slopped downward, provides resistance to the price. Thus, as the asset trades inside a Descending Triangle, its range shrinks to a downside. Related Reading: Bitcoin & Altcoin OI Forming Same Warning Setup As Dec 2024, Analyst Says A break out of either of the trendlines can imply a continuation of trend in that direction. This means that a surge above the triangle can be a bullish signal, while a decline under it a bearish one. Like the Descending Triangle, there is also the Ascending Triangle in TA, which works similarly, except for the fact that the orientation of the trendlines is flipped; the upper line is the one parallel to the time-axis instead. Now, here is the chart shared by the analyst that shows the Descending Triangle that the 1-day price of XRP has been stuck inside for the last few months: As displayed in the above graph, XRP made a retest of the Descending Triangle’s upper trendline earlier in the month, but it was unable to break past the resistance. The coin has since been on the way down and has traveled roughly halfway through the distance between the trendlines. “It looks like XRP is heading for a retest of the triangle’s bottom at $2.72,” notes Martinez. From the current exchange rate of the asset, a fall to this target would imply a loss of almost 7%. From the chart, another development related to the cryptocurrency is also visible: its price is slowly inching toward the apex of the triangle. Generally, breakouts become more likely to occur the closer the asset gets to the end of the channel. This is because the range gets progressively tighter over the course of a triangle. Related Reading: Bitcoin Plummets To $120,600: This Could Be The Next Support Thus, the next retest of either trendline could be interesting, as it may pave the way to a breakout. It only remains to be seen, though, which level XRP will retest next. XRP Price At the time of writing, XRP is floating around $0.292, down 3% over the last seven days. Featured image from Dall-E, charts from TradingView.com