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A cryptocurrency analyst has pointed out how support could lie between the $0.60 and $0.90 levels for XRP, based on this technical analysis (TA) pattern.
XRP Could Be Moving Inside An Ascending Triangle
In a new post on X, analyst Ali Martinez has shared a TA pattern forming in the monthly price chart of XRP. The pattern in question is an Ascending Triangle, which is a type of triangle. Triangles form whenever an asset’s price trades between two converging trendlines, with the upper level acting as a source of resistance, while the lower one that of support.
The main characteristic of an Ascending Triangle is that the upper line is parallel to the time-axis. This means that as the asset travels through the channel, its consolidation range shrinks to an upside.
Generally, breaks out of a triangle can imply the start of a sustained move. A surge above the resistance can be a bullish sign, while a drop under the support a bearish one. In Ascending Triangles, the upward bias suggests that a breakout may be more probable to occur in the up direction.
Similar to the Ascending Triangle, there is also a pattern called the Descending Triangle in TA. This channel works much in the same way, with the key difference being that the bottom level is the one parallel to the time-axis instead. Thus, as the price moves through this pattern, its range shrinks down.
Now, here is the chart shared by Martinez that shows the Ascending Triangle that the 1-month price of XRP has been stuck inside over the past few years:
As displayed in the above graph, the monthly XRP price retested the upper ceiling of the Ascending Triangle last year, but it ended up finding rejection. The coin has since witnessed a significant drawdown.
Currently, it’s unclear whether the bearish momentum in the cryptocurrency will advance further, but in the event that it does, a retest of the lower level might occur. “XRP could find support along the triangle’s hypotenuse between $0.90 and $0.60,” explained the analyst. This line has so far acted as a cushion for XRP a few times, including during the lows of the bear market.
It now remains to be seen if the asset will retest the support line in the near future or if it will find a rebound before one can occur.
XRP Price
At the time of writing, XRP is trading around $1.4, down nearly 5% over the last 24 hours.
