A cryptocurrency analyst has highlighted how the $0.90 XRP level aligns with the support level of a long-term pattern in the asset’s monthly price.
XRP may follow a long-term ascending triangle
In a new one after On X, analyst Ali Martinez shared a technical analysis channel (TA) forming in the 1-month price of The pattern in question includes two trendlines: a flat upper level and an upward-trending lower level. A channel with converging trend lines like this is colloquially known as a triangle. In the case of this particular triangle, the arrangement resembles that of a specific type: the Ascending Triangle.
The fact that the lower level has a positive slope means that as price trades within an ascending triangle, its range shrinks to net upside potential. This is why the pattern has ‘ascending’ in the name.
As with other consolidation patterns in TA, the upper level of the ascending triangle is considered a source of resistance, while the lower level is of support. If the asset manages to cross any of these boundaries, it may experience a continuation of the trend in that direction.
Here is the chart shared by Martinez showing the ascending triangle that the monthly price of XRP has traded in over the past few years:
As shown in the chart above, the 1-month XRP price retested the ascending triangle resistance level last year and was ultimately rejected. Since then, the cryptocurrency has seen a notable decline, with the price now closer to the lower level than the upper level.
In the chart, the analyst has extended the asset’s current trajectory to show a path it could potentially follow in the coming months. This shows that XRP could eventually retest the lower level around $0.90.
“I’m keeping a close eye on $0.90 on $XRP,” Martinez noted. “If the price gets to that point, I think it could provide an attractive long-term buying opportunity.” It now remains to be seen whether the cryptocurrency’s current bearish trajectory will last long enough to retest this level.
Triangles are not the only class of consolidation patterns in TA. Another important category consists of parallel channels, patterns that involve two parallel trend lines. As the analyst noted in another X afterEthereum traded weekly within such a channel.
As visible in the chart, Ethereum has completed 75% of the way through the channel with its recent decline. The next relevant level is at $1,096, which corresponds to the lower trendline.
XRP price
XRP previously fell to a low of $1.05, but the price has since risen slightly to $1.15.