XRP price has been consolidating below a crucial trend line for nearly two months. However, a breakout seems to be around the corner as Ripple gets squeezed between vital support levels and resistance barriers. The next breakout to occur will be one to behold as it could hold the key to a rally that could retest 2018 levels. XRP price has been forming multiple bullish patterns on a higher time frame, signaling a bright future. Considering the price action between August 9 and November 2, the remittance token has set up six lower highs and roughly five higher lows. Connecting these swing points using trend lines results in the formation of a symmetrical triangle pattern. As XRP price progresses through this formation, it gets squeezed, indicating a substantial reduction in volatility. This technical setup forecasts an 80% upswing, determined by adding the distance between the first swing high and swing low to the breakout point. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

A decisive close above $1.137, coinciding with the 50% Fibonacci retracement level, will confirm the start of an uptrend. Such a move will propel XRP price to the supply zone, ranging from $1.237 to $1.417. While the initial leg-up is crucial, a decisive daily close above $1.417 will trigger a move toward $2. In a highly bullish case, the XRP price will retest the 161.8% Fibonacci extension level at $2.324, A run-up that would constitute a 104% ascent from $1.137. The last leg-up to the next Fibonacci level will put XRP price at $3.226, just under the all-time high at $3.317. While technical and on-chain metrics are leaning bullish, Ripple’s recent quarterly report shows that it saw a 200%+ increase in its XRP sales quarter-over-quarter. Interestingly, this sale comes from its product On-Demand Liquidity (ODL) which leverages the use of XRP to transfer money across borders.

Ripple is preparing for a bullish breakout

Nov 03 2021