XRP is on the verge of breaking out of a six-year symmetrical triangle, potentially rising to $6 or $22, depending on when it stages the much-anticipated breach.
Market analyst EGRAG recently drew the public’s attention to this position. The analyst shared a chart detailing XRP’s movements over a 3-month timeframe. The chart suggests that the digital asset could observe a bullish price momentum in January 2024 or July 2024, leading to varying price targets.
The Extensive Symmetrical Triangle
Notably, data from the chart reveals that XRP is currently stuck within an extensive symmetrical triangle. The triangle’s formation started in January 2018, following XRP’s impressive rally in 2017. The 2017 rally resulted in XRP claiming an all-time high of $3.31 in January 2018.
However, the cryptocurrency collapsed from this high shortly after, leading to the formation of the upper trendline of the symmetrical triangle. Since then, XRP has continued to record lower highs and higher lows. This pattern has kept it within the confines of the triangle for six years.
The digital asset’s first attempt at a breakout came up in April 2021, when it rallied to a high of $1.96. Due to a lack of support from the broader crypto market, XRP was unable to breach the upper trendline then. The resulting resistance led to a massive price drop.
XRP to $6.4 or $22.3
With XRP now close to the peak of the symmetrical triangle, EGRAG suggests that the crypto asset could rally to $6.4 or $22.3 depending on when it breaks out of the triangle. The analyst traced each of the possible price trajectories with a colored line.
The earlier breakout, represented with blue, would see XRP breach the upper trendline in January 2024. This breach, expected next month, could result in an XRP rally to $6.4. At XRP’s current price of $0.6253, the asset would need to surge 923% to hit the $6.4 price target.
While the $6.4 target in itself is highly ambitious, it remains conservative, compared to the second goal. EGRAG asserted that if XRP remains in the symmetrical triangle for seven more months, and breaks out in July 2024, its price appreciation could lead to a $22.3 price. This would mark a 3,466% increase from XRP’s current value.
Nonetheless, EGRAG emphasized that current bullish indicators have pointed to an earlier breakout. As a result, the analyst believes the January 2024 breach could occur, leading to a $6.4 price target. Despite this sentiment, he maintained that the July 2024 breakout still remains plausible.
Meanwhile, XRP’s RSI on the 3-month timeframe remains in a favorable position. At a value of 54.14, the 3-month RSI shows a growing uptrend but remains in neutral territories. XRP’s immediate resistance to this uptrend sits at $0.6881, aligning with Fib. 1.618.
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