XRP Price Could Jump 325% Soon, According to Key Trading Indicator
Will XRP Break Out From its Long-Term Pattern? | Credit: Hameem Sarwar
Key Takeaways
- The XRP price has traded in a long-term triangle pattern for over four years.
- XRP’s long-term and short-term wave counts give a bullish projection.
- Will XRP break out from its triangle, and how long can it increase if it does?
The XRP price has traded without notable volatility since June 2022. It has been in a short-term downward trend since June 2023 and has fallen 15% year to date. Despite this underperformance, XRP is nearing the end of a 1350-day pattern, the resolution of which can bring back volatility.
This raises the question: Which way will the pattern break, and what will happen once XRP moves outside the current range?
XRP’s Long-Term Outlook
The weekly XRP price analysis shows a symmetrical triangle that has existed since the start of 2021. The interesting thing about the pattern is that the triangle’s support and resistance trend lines will converge by the end of the year.
Because of the lengthy consolidation, a significant movement will likely occur. Its direction will be determined by whether the price breaks out above resistance or falls below support instead.
The wave count implies a breakout is more likely. According to the count, XRP is in a long-term A-B-C structure that started in 2020. The entire triangle is part of wave B, and the sub-wave count is in black. Once XRP completes sub-wave E, it will start wave C and break out.
If waves A:C have a 1:1 ratio, XRP can reach a high of $2.29, an increase of 325% from the current price. Interestingly, this would still be below the all-time high price of $3.84.
However, technical indicators do not confirm or deny this potential wave count. The Relative Strength Index (RSI) freely moves above and below 50, while the MACD does the same with 0. These signs are associated with an undetermined trend.
Can the XRP Price Break Out?
The shorter-term daily time frame also provides a bullish reading. The price has followed an ascending support trend line since it began to increase on July 5. It bounced each time it reached it, creating a long lower wick (white icon). The original upward movement may have occurred due to positive XRP news regarding the SEC vs Ripple lawsuit.
This feature suggests that buying pressure manifests each time XRP returns to the trend line. Currently, XRP trades just under the $0.55 horizontal resistance area. If it breaks out above it, this will confirm the trend reversal and cause a breakout above the long-term diagonal trend line.
The wave count gives an extremely bullish outlook. It shows the beginning of a 1-2/1-2 bullish wave count, which would lead to a significant appreciation if accurate.
In this proposed count, the XRP price today is in sub-wave three of wave three, meaning the rate of increase is likely to accelerate soon. This is in line with the long-term wave count and bullish price action.
XRP Volatility Incoming
The weekly and daily time frames both give a bullish XRP outlook. This is especially evident by the wave counts, which indicate the XRP price may have already started its upward movement. A breakout from the $0.55 resistance area and then the symmetrical triangle will confirm this projection.
