Ripple’s XRP is currently trading in the green zone as its price continues to move within a triangle pattern, a formation that signals indecision in the market. It is difficult to predict whether this pattern will break to the upside or downside, but this type of consolidation is often a harbinger of a big move in either direction. Currently, the price remains within a certain range and the market is trying to determine its next move.
Sideways action may feel boring, but it is healthy market behavior, allowing the price to gain momentum before moving higher. As long as XRP remains above the key support levels, especially the price level of $2.04, the bullish trend remains intact. A breakout above this consolidation phase could see XRP test higher levels, with $3 being a potential next resistance level, and even higher towards all-time highs.
Price levels to keep an eye on
$2.04 Support: This is a crucial level for XRP. If the price remains above this level, the bullish scenario remains intact. A drop below $2.04 would negate the near-term bullish outlook and open the door for a bearish reversal.
$3 resistance: If the price moves higher, $3 will be a key resistance zone. A successful break above this level could pave the way for XRP to reach its all-time high.
Bearish scenario
If XRP falls below the USD 2.04 level, the bearish scenario becomes more likely. In this case, the price could move lower, with the support zone being between $1.8 and $1.79. A sustained decline below $2.04 could indicate the market is preparing for a bigger correction, and more negative consequences could follow.
At the time of writing, XRP is trading at $2.17 and is up more than one percent in the last 24 hours.