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The price of the XRP cryptocurrency could be on the verge of a 16% move if the symmetrical triangle pattern ends up playing out.
The chart shows the pattern for XRP/TetherUS Perpetual Contract (XRP/USDT) on a one-hour timeframe.
Symmetrical triangle
A symmetrical triangle is a continuation pattern in technical analysis. During such periods, the price tends to consolidate before continuing the prior trend (although it should be noted that it can also lead to a reversal).
It is formed by two converging trendlines: a downward-sloping upper resistance line and an upward-sloping lower support line.
The price action (the jagged black line) shows a period of decreasing volatility. The swings are becoming noticeably smaller, squeezing the price towards the apex of the triangle.
So far, the market is in a phase of indecision, meaning neither buyers nor sellers are able to take control.
If the price breaks out from the current price of $2.05, a 16% increase would project a target price of roughly $2.4.
XRP's failure
The launch of spot XRP exchange-traded funds, such as Canary Capital's XRPC, was a groundbreaking milestone for the XRP token.
It drew significant institutional inflows that have already exceeded $900 million across multiple products.
Yet, this enthusiasm failed to translate into much-needed price recovery.
Aggressive selling from large holders threw a wrench in the works for the bulls.
Bitcoin's plunge below $90,000 also triggered widespread deleveraging across altcoins.