A crypto analyst has pointed out how a symmetrical triangle forming on the 12-hour XRP price could indicate notable progress for the asset.
XRP may be moving within a symmetrical triangle
In a new after On X, analyst Ali Martinez shared a technical analysis pattern (TA) that XRP has recently consolidated within. The pattern in question is a ‘Symmetrical Triangle’, which involves a consolidation channel that, as the name suggests, is shaped like a triangle. These are two converging trend lines, with the upper one acting as a source of resistance and the lower one as support.
The main characteristic of a symmetrical triangle that distinguishes it from other triangular channels is that the trend lines approach each other at approximately equal and opposite angles. This means that as the item moves within this channel, its range shrinks to a center point.
As with other TA patterns, breaking triangles also imply a possible continuation of the trend in that direction. That is, a rise above the pattern can be a bullish sign, while a fall below it can be a bearish sign.
Here is the chart shared by Martinez showing the symmetrical triangle that the 12-hour XRP price has been trading in over the past few months:
As shown in the chart above, the 12-hour XRP price briefly tested the upper level of the symmetrical triangle last week, but the coin was ultimately rejected. Since then it has decreased towards the center line of the triangle.
From this position, it is difficult to say which trendline the cryptocurrency will retest next, but it is possible that the next few retests could end in a breakout based on the asset’s progress within the channel. The chart shows that XRP is not far from the top of the triangle, which means that the range within the triangle has narrowed significantly. In general, a smaller range means a greater chance of a breakout.
As for what kind of move a breakout from this symmetrical triangle could lead to, the analyst highlighted a potential target of 35% based on the height of the channel. It now remains to be seen which way the price will escape from this triangle and whether a move of such magnitude will follow.
In other news, XRP recently saw its SuperTrend bullish on the daily time frame, as Martinez noted in another X after.
This is the first time since January that the indicator has given this signal. “After months of selling pressure, we are officially seeing a buy signal that anticipates a major comeback in XRP’s trend,” the analyst explains.
XRP price
XRP rose to $1.50 on Friday, but the cryptocurrency has since fallen back to $1.41.