XRP’s Symmetrical Triangle Hints of a Breakout Past $0.80
- XRP has formed a symmetrical triangle on the 6-hour chart
- A resolution of this triangle could result in XRP retesting the $0.72 to $0.80 level
- XRP could break past $0.80 if there is enough momentum
- However, XRP might only have till December 12th to remain in bullish territory, at least in the short-term
- High probability of a selling frenzy once the Flare Networks snapshot is complete at 00:00 UTC on the 12th
From around the 28th of November, the remittance coin of XRP has been consolidating around the $0.60 price area. As a result, a symmetrical triangle has formed on the 6-hour chart that has its genesis at the recent peak value of $0.80 – BitStamp rate. The screenshot below, courtesy of Tradingview, further demonstrates this fact.
Also from the chart above, the following can be observed.
- XRP is still within the symmetrical triangle with the pattern expected to resolve by 4th December
- If the triangle resolves in a traditional manner, XRP could very well retest $0.80 and even break it
- XRP is above the 50, 100 and 200 moving averages on the 6-hour chart, thus providing evidence of bullishness
- Trade volume is in the green for the first time in a day
- However, the 6-hour MACD points towards further consolidation or even selling for a few more hours or days
- The 6-hour MFI and RSI are in neutral territory, both at around 53
XRP has till December 12th to Thrive, At Least in the Short-Term
From a news and fundamentals point of view, the Flare Networks snapshot is on the 12th of this month at 00:00 UTC. This then means that XRP investors are preparing to participate in the event.
However, based on past snapshots of other digital assets, there is a high probability of massive selling of XRP right after the snapshot. This is due to the fact that most investors bought XRP due to the incentive of free Spark Tokens (FLR) to be distributed next year.
The rally from $0.30 to $0.78 and an increase of new XRP accounts, is evidence that the free Spark Tokens is behind investor interest in XRP.
Connecting the dots, the same investors who did not own XRP before the Flare Networks snapshot will probably sell after the event. If the selling of XRP does indeed happen, the bottom of such a sell-off might be a good place to accumulate more XRP in preparation for next year when Flare Networks introduces DeFi into the XRP ecosystem.
XRP’s Price Also Depends on Bitcoin Being Stable
As with all analyses of altcoins such as XRP, investors and traders are reminded that any sudden movements from Bitcoin will have a negative effect on the remittance coin. If Bitcoin pumps, capital will be diverted from alts towards BTC. If Bitcoin dumps, capital will also be diverted from alts into BTC or stablecoins such as Tether. Therefore, Bitcoin needs to be stable for XRP to thrive.
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