The XRP price sees a new triangle formation on the chart that could indicate an impending rally. An important fact about this triangle formation is the fact that it led to a significant rally seven years ago, and if history repeats itself, XRP could be heading for a bullish wave.
XRP Triangle Formation Signals Bullish Continuation
In an analysis on TradingView, crypto analyst TradingShot says pointed out that the XRP price sees a new triangle formation. This formation comes from the high of a number of indicators, all of which have turned bullish during this period.
Related reading
The indicators pointed out by the crypto analyst include the price closing below the 1W MA50 and 1W MA200. While this might look bearish at first glance, it could be a signal that the price is heading higher as investors get back in at low prices. This is also made clear by the drop in the 1W RSI to 40.00, as historically this indicator has always offered a buying opportunity at this level.
Furthermore, the crypto analyst points out that the XRP price is currently testing the bottom with the higher lows trendline. These have all come together to form a triangle structure not seen since 2013-2017.
This triangle structure is important considering that the last time the XRP price appeared in 2013 and eventually broke out in 2017, it recovered to new all-time highs. Therefore, the appearance of this triangle structure this time could mark the beginning of a new bullish trend that also pushes the altcoin’s price to new all-time highs.
How far can the price go?
In the scenario where the XRP price follows the 2013-2017 trend and a breakout occurs, the crypto analyst sees the price reaching a new all-time high. However, for this to happen and for the bullish trend to be confirmed, the price will have to break above the 1W MA200, as the analyst explains.
Related Reading: Crypto Research Firm Says Bitcoin Crash Below $60,000 Might Not Be the End, Here’s Why
In the event that the altcoin breaks through this important level, TradingShot puts the price at $4.5. Such a move would mean an increase in value of more than 800%, compared to the price currently at $0.47.
However, as with any bullish scenario, there is also the possibility that the trend may not materialize. In the event that the price fails to break the 1W MA200, the crypto analyst advises “that the
Featured image created with Dall.E, chart from Tradingview.com