XRP price is calming down and entering a pattern that can become a starter for the next rally

After reversing from a local peak at roughly $0.51 in price, XRP price has lately entered a symmetrical triangle formation. Due to the likelihood that the asset will break out of the pattern and resume a more clear-cut trend, this technical formation leads traders to believe there will be an increase in volatility soon.

A chart pattern known as a symmetrical triangle is characterized by converging trendlines joining a string of lower highs and higher lows, with the price varying between these levels.


XRP/USD 1-day chart | Source: TradingView

The pattern often develops due to market participants’ expectations for the following large price movement during periods of consolidation. Pressure increases as the triangle gets smaller, frequently leading to a breakout in either the upward or downward direction. Generally, a breakout from the symmetrical triangle signals an uptick in volatility.

The divergence between moving averages is a crucial indicator to keep an eye on in this pattern. If the shorter-term moving average in the case of XRP starts to cross above the longer-term moving average, this can indicate positive momentum. On the other hand, it can indicate that bearish pressure intensifies if the shorter-term moving average crosses below the longer-term moving average.


XRP/USD 4-hour chart | Source: TradingView

At the time of writing, Ripple’s native token is changing hands at $0.491.

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