Key Takeaways
XRP has been consolidating for nearly three months.
Prices have gotten squeezed between the $0.80-$0.74 range.
Such market behavior suggests that a spike in volatility is underway.
Share this article
Ripple (XRP) appears to be gaining momentum for a breakout as it approaches the apex of a symmetrical triangle on its daily chart. Still, the direction of its trend will be determined after a break of support or resistance.
Ripple Looks Primed for Volatility
Ripple appears to be gearing up for a significant price movement after consolidating for nearly three months.
The cryptocurrency market has kicked off Monday’s trading session on a positive note. Bitcoin gained more than 1,000 points in market value while Ethereum surged by 3.67%. Despite the early signs of optimism, most digital assets remain stagnant without clearly indicating where they are heading next.
For instance, XRP’s price action continues stuck within a symmetrical triangle that has been forming on its daily chart since late December 2021. A descending trendline developed along with the swing highs while an ascending trendline formed along with the swing lows. This consolidation pattern estimates a daily candlestick close outside of the $0.80-$0.74 price range will determine the direction of the trend.
Given the ambiguous outlook that Ripple presents, it is reasonable to wait for a decisive break of support or resistance before entering any trade. Breaching any of these hurdles could result in a 39.50% price movement to either $1.12 if bulls take over, or $0.45 if bears take the upper hand. This target is determined by measuring the distance between the two highest points of a triangle and adding it to the breakout point.
It is worth noting that XRP remains at risk of securities classification. Even though Ripple has assembled an all-star team of securities lawyers, with Andrew Ceresney, former director of the SEC’s Division of Enforcement being one of them, a hypothetical “XRP = security” court ruling will not go unnoticed. The ripple effect of such a decision could lead to a wipeout of many adamant investors.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…
Linqto Sells Out of Ripple Shares as Legal Case Develops
Linqto, an investment firm that provides liquidity for private securities markets, briefly sold out of Ripple shares this week. Ripple Shares Sell Out on Linqto Nick Burrafato, Director of Digital…
Ripple Partners With Digital Euro Think Tank
Ripple has joined the Digital Euro Association (DEA) to provide input on the design of central bank digital currencies (CBDCs). Partnership Will Involve Knowledge Exchange Digital Euro Association Chairman Jonas…
Ripple’s XRP Still at Risk of Securities Classification
Even if the court rules in favor of Ripple’s motion to dismiss, XRP’s fate as a “currency” remains uncertain. Motion to Dismiss Ripple, the company behind the third-largest digital asset…
Be the first to comment