The price of XRP is still consolidating between two critical converging trend lines. As the asset coils up, it is preparing for a major breakout, which will result in a spectacular run-up or run-down. On-chain measures, on the other hand, indicate that this move will most likely favor the bulls.
Since December 2021, the price of XRP has established two lower highs and two higher lows. The creation of a symmetrical triangle is seen by drawing a trend line along these swing points. Although there is no breakout bias in this technical pattern, it anticipates a 46% growth rate by analyzing the distance between the first swing high and swing low.
When this distance is added to the breakout, the potential target for the setup is revealed. A bullish breakthrough would value XRP at $1.24, while a bearish breakout would value the remittance token at $0.362.
An educated prediction is that the consolidation will last another week or two before a breakthrough. However, based on current market bullishness, the coin price is expected to have a bullish rise when it breaks out of the symmetrical triangle.
According to the supply distribution map, XRP whales have been actively collecting the remittance token. Between February 6 and 21, the number of whales with 10 million or more XRP tokens climbed from 317 to 337. This 6.3% gain is a proxy for their investment preferences, indicating that these investors are interested in XRP at the present price levels, implying that a bullish breakout from the symmetrical triangle is possible.
The optimistic outlook makes sense. However, market participants should be aware of the negative scenario in order to limit their risks. Triangles are frequently greeted with a fakeout before the price rebounds in the intended direction. This is a possibility for XRP owing to the liquidity available below the equal lows set around $0.509.
As a result, an alternate scenario calls for a temporary wick below $0.509, which would allow market makers to capture liquidity. This move will almost certainly result in purchasers acquiring XRP at a discount, igniting a bull movement.
In a worst-case scenario, the price would show a daily candlestick close below $0.509. This move would result in a lower bottom, rendering the bullish thesis for the remittance token worthless. Such a pattern would imply that the decline would continue, driving the XRP price toward the anticipated level of $0.362.
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