As it approaches the apex of a symmetrical triangle, XRP appears to be heading for a spike in volatility.
Important Takeaways
- XRP is settling within a narrow price range.
- Where prices are headed next should be determined by a daily candlestick close outside of the $1.17-$1.10 range.
- Over the last few days, some huge whales have been leaving the network.
Volatility appears to be returning among the major cryptocurrencies by market capitalization as a new monthly closure approaches. Despite the fact that XRP has remained unchanged, the technicals indicate that a large price movement is likely.
Before The Breakout, XRP Consolidates
The XRP token from Ripple has been consolidating in a narrowing trading range.
On the daily chart, the sixth-largest cryptocurrency's price action appears to have formed a symmetrical triangle over the last twenty days. The swing highs can be used to form a descending trend line, while the swing lows can be used to draw a rising trend line.
As XRP approaches the apex of the triangle, it indicates that a significant increase in volatility is imminent. The height of the technical pattern's y-axis multiplied by the breakout point predicts a price movement of 31.7 percent in either direction.
Only a daily candlestick close outside of the $1.17 to $1.10 range can predict where XRP will go next. If there is a surge in buying pressure and the overhead resistance is broken, the asset could rise to $1.55, but if the $1.10 level is lost as support, the asset could fall to $0.75.
Despite the symmetrical triangle's uncertain aspect, data from Santiment, a behavior analytics company, suggests that whales have been making money.
Over the last three days, the number of addresses with more than 10 million XRP has fallen by 1.5 percent. Within such a short time, about five whales have either left the network or dispersed their token.
The abrupt drop in significant investors on the network is a bad indicator for a long-term upswing, especially given that they own more than $11 million in XRP. A surge in selling pressure could send XRP below $1.10, resulting in a 31.7 percent retracement.
Only a daily candlestick close outside of the $1.17 to $1.10 price range will define where XRP will go next.
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