- XRP’s symmetrical triangle signals a potential rally to $8, with $1 as critical support for sustained bullish momentum.
- The megaphone pattern hints at increased volatility, boosting chances of XRP hitting double-digit price targets.
- SEC vs. Ripple case deadline tomorrow could decide XRP’s direction, with outcomes ranging from sub-$2 to new highs above $3.40.
XRP is predicted to have a potential rally to $4. According to CRYPTOWZRD, XRP has changed previous resistance into solid support, potentially leading to a substantial upward movement.
The altcoin’s price against Bitcoin hints at increased market interest, especially as it nears its 2018 all time high of $3.40. Steph is Crypto predicts a bullish target of $14 and a conservative target of $5 for XRP after a successful retest of its breakout point.
Symmetrical Triangle Formation
XRP has been consolidating within a symmetrical triangle since its rally in 2017. This pattern indicates a momentum buildup. The tip of this triangle is nearing completion, suggesting a substantial breakout is near.
In 2017, XRP experienced a similar breakout, which led to a parabolic rally. The current setup shows XRP flipping its old resistance around $0.80 to $1.00 into new support, reinforcing the potential for a bullish continuation.
CRYPTOWZRD noted that a breakout above the triangle’s upper trendline could target $8.00, based on the pattern’s height projection. Support levels include the $1 flip zone and the lower boundary of the triangle.
A successful breakout could signify renewed investor confidence and attract buying pressure. A failure to sustain above $1 or a breakdown below the lower boundary could lead to prolonged consolidation or bearish momentum.
Megaphone Pattern Adds to Bullish Projection
Egrag Crypto noted the Megaphone Pattern formation, characterized by higher highs and lower lows, indicating increasing market volatility. The analyst emphasized that this pattern typically precedes breakouts during the third upswing.
XRP’s current price aligns with this formation, suggesting a potential for double digit price targets. The Megaphone Pattern’s success rate exceeds 70%, with key features including increased volume or sustained price action above the breakout point.
Egrag Crypto noted that the top price target remains undisclosed to avoid misleading new investors, but double digit targets are anticipated. This formation, combined with the symmetrical triangle, boost the bullish outlook for XRP.
Short Term Indicators and Market Outlook
In the short term, XRP’s price near the upper Bollinger Band at $2.69, with a midline support around $2.49, indicates bullish momentum. The MACD line slightly above the signal line suggests mild bullish momentum, though minimal histogram growth points to a potential continuation or consolidation phase.
Volume is at 15.73M, reflecting moderate market activity. Immediate resistance is at $2.62, with a potential retest of higher levels like $2.70 if a breakout occurs. Key support levels include $2.49 and $2.36.
A successful breakout above $2.62, confirmed by volume, could lead to upward continuation. However, failure to sustain this level may trigger a pullback toward support levels.
Market focus also remains on the ongoing SEC vs. Ripple case, particularly with tomorrow’s, January 15 filing deadline. The SEC’s decision on whether to proceed with the appeal or withdraw it could significantly impact XRP’s price movement. A convincing challenge by the SEC could push XRP below $2, while a withdrawal might enable it to surpass its 2018 record high.
