XRP hints at buy signal; is there a 130% breakout on the cards
XRP price breached its three-month consolidation pattern on 27 March, indicating the start of a massive run-up. Investors can jump on this bandwagon and ride it to crucial levels before booking profits. This outlook makes sense considering the recent bullish narrative that has evolved with BTC.
XRP price ready to rumble
XRP price action over the past year has set up four distinctive lower highs and three higher lows. Connecting these swing points using trend lines shows the formation of a symmetrical triangle.
This technical formation forecasts a 69% upswing, determined by adding the distance between the first swing high and low to the breakout point.
Interestingly, the last three times XRP price tagged the lower trend line, it rallied anywhere from 70% to 170%. Therefore, the latest retest that occurred on 29 April shows a massive promise for the remittance token, especially if history repeats itself.
Assuming XRP price breaks out at $0.827, adding a 69% measure reveals a target of $1.40. However, this technical formation has no directional bias. So, a sudden spike in selling pressure that produces a two-day candlestick close below the lower trend line at $0.575 could trigger a bearish breakout. In such a case, adding 69% to this point reveals a target of $0.176.
Considering the bullish outlook for the crypto markets at the time of writing, there is a good chance XRP price could bounce from the lower trend line and retest the upper trend line. If investors make a risky move by accumulating now, the total run-up would constitute a 128% ascent to reach its target at $1.40.
However, as seen in the chart below, the resistance barrier at $1.35 could prematurely cut down the upswing.
While most altcoins have witnessed massive crashes over the last few days, XRP price seems to have kick-started its recovery without a delay. The on-chain volume supports the symmetrical triangle formation as it has been declining since 2022 and has dropped from roughly six billion to 1.57 billion.
Therefore, a breakout from the said pattern is likely to result in a massive spike in on-chain volume that will support the exponential run-up to $1.40. Considering that the Bitcoin price is also looking ready for a reversal, the bullish outlook for the XRP price makes sense.