An analyst has pointed out how XRP could be targeting a breakout toward $15 if this pattern forming in its 1-week price chart is real.
XRP May Have Broken Out Of A Symmetrical Triangle
In a new post on X, analyst Ali Martinez has discussed a long-term consolidation pattern that XRP may have been traveling inside until recently.
The formation in question is a Symmetrical Triangle from technical analysis (TA), which, as its name suggests, is shaped like a triangle. The pattern involves two trendlines within which the price consolidates, with a core feature being that these two levels approach each other at a roughly equal and opposite slope (hence the ‘symmetrical’ in the name).
The upper line of the triangle is made by joining together lower highs in the asset and the lower one by connecting higher lows. Just like with other consolidation patterns in TA, the former is likely to provide resistance while the latter supports.
As the cryptocurrency consolidates inside the triangle, the pattern gets narrower, indicating a higher probability of a breakout. When the breakout occurs above the upper trendline, the coin could be assumed to be heading toward a bullish outcome. Conversely, a fall below the lower level may indicate a bearish signal.
The Symmetrical Triangle is one of the triangle patterns in TA. Other popular types include the Ascending and Descending Triangles, where one of the trendlines is parallel to the time-axis.
Here is the chart shared by Martinez, highlighting a potential Symmetrical Triangle that the weekly price of XRP has been trapped inside over the last few years:
The weekly price of XRP has been following a long-term symmetrical triangle pattern from 2018 until November of last year. As the asset approaches the apex of the triangle, a breakout becomes more probable. This is precisely what appears to have occurred, with a sharp surge above the triangle in November.
“If this is a symmetrical triangle, XRP has broken out and is targeting $15!” notes the analyst. This target is based on the premise that breakouts from the pattern often resemble the height of the triangle (the vertical line).
From its current price, a rally to this level would signify an impressive increase of 517%. Now, the key question remains: will this pattern hold for XRP?
XRP Price
As of this writing, XRP is trading around the $2.43 level, having experienced more than a 1% increase over the last 24 hours.
