- XRP consolidates in a falling wedge pattern, signaling a bullish breakout with a potential 50.23% rally toward $3.60.
- Symmetrical triangle signals mixed potential. A breakout above $2.75 could target $3.55-$3.77, but failure risks a drop to $1.64.
- Bollinger Bands and MACD show short-term volatility; $2.43 support critical, $2.23 key level if selling pressure increases.
XRP is up for a bullish rally, according to crypto analyst Captain Faibik. The analyst suggests a breakout could push the price to $3.66. The price action indicates consolidation within a falling wedge pattern, typically a bullish reversal pattern. At press time, XRP was trading at $2.47, down 2.17% in the past 24 hours but up 3% over the last seven days.
Falling Wedge Pattern
The falling wedge pattern is shown by two downward trendlines that meet over time. This formation shows diminishing bearish momentum and the potential for a bullish breakout.
The lower trendline is the dynamic support, with XRP’s price bouncing off this level multiple times. The upper trendline is the dynamic resistance, recently challenged by the price. XRP is attempting to break above the $2.40 level, which analysts identify as a key resistance.
A successful breakout here could lead to a projected target of $3.60, a potential 50.23% increase from the breakout point. The candlestick patterns also show strong bullish momentum, with recent candles forming higher lows, suggesting increasing buying pressure.
Symmetrical Triangle Shows Mixed Signals
Analyst Egrag Crypto notes another formation, the symmetrical triangle pattern, on the daily timeframe. This pattern, formed by converging trendlines, shows decreasing volatility and presents both bullish and bearish potential.
The tip of the triangle, projected for late January 2025, is a critical point where a breakout or breakdown could occur. Key levels within this pattern include support at $2.07 and $1.63, while resistance is at $2.55 and $2.75.
A breakout above $2.75 could see XRP move towards targets of $3.55 to $3.77. However, failure to hold above the $2.0700 support may lead to a pullback, potentially revisiting the $1.64 level.
Short Term Indicators Indicate Volatility
On the 4 hour timeframe, XRP’s price movements along the Bollinger Bands and the MACD is interesting. The price recently pulled back from the upper Bollinger Band at $2.62, indicating a decrease in bullish momentum.
The midline at $2.43 now acts as potential support, while the lower band at $2.23 being the important support if selling pressure increases. The MACD shows a slight bullish bias, with the MACD line above the signal line.
However, declining momentum on the histogram suggests a potential bearish crossover, which could lead to downside movement if confirmed. Volume remains relatively low, indicating reduced market participation but potential for increased volatility during a breakout.
