- XRP stuck in consolidation while waiting for a breakout to $0.5.
- The immediate upside is limited by the 200 SMA and the stubborn hurdle at $0.3.
- XRP’s expected uptrend may fail to occur if the price drops under the symmetrical triangle.
Ripple has for a long time been in consolidation following the massive breakdown in December. The extensive freefall came after the United States Securities and Exchange Commission filed a case against Ripple Labs Inc., for selling unregistered security tokens.
Ripple eyes a breakout to $0.5
At the time of writing, XRP is doddering at $0.279 in the wake of a minor recovery from last week’s slump to $0.25. Slightly above the current price levels the 200 Simple Moving Average on the 4-hour chart caps movement.
For now, the odds impulse is in favor of the bulls as reinforced by the Relative Strength Index. A break above the midline will encourage more buyers to join the market. If enough volume is created behind Ripple, we are likely to see a breakout above the symmetrical triangle.
Note that the symmetrical triangle is created by two trendlines connecting a series of lower highs and higher lows. The trendlines converge at a relatively equal point called an apex. Simultaneously, a breakout above the upper trendline line results in a significant upswing while trading below the triangle culminates in extensive losses.
XRP/USD 4-hour chart
Breakouts or breakdowns from symmetrical triangles have an exact target, measured from the highest to the lowest of the pattern. Thus, XRP could soar to $0.5 if the price spikes above the triangle. However, the 50 SMA and the 100 SMA may absorb the buying pressure. XRP also needs to overcome the resistance at $0.3 to sustain the uptrend.
On the flip side, losses under the triangle would result in losses as low as $0.087. Other areas of support to keep in mind include $0.25, $0.20, and $0.17.