XRP bulls are attempting to breach a critical trendline resistance on the weekly chart, potentially driving prices to $2.50 if successful.
XRP bulls are currently attempting to breach a critical trendline resistance on the weekly chart. This resistance level, part of a symmetrical triangle pattern, represents a significant hurdle because a successful breakout could lead to an explosive price increase, according to Captain Faibik.
He emphasized that the breakout from this consolidation phase could propel XRP to new heights.
$XRP Bulls are once again trying to Clear the Crucial Trendline Resistance on the Weekly timeframe Chart..!!
Once the Breakout happens, the Pump will be epic. ✍️#Crypto #XRP #XRPUSDT pic.twitter.com/rsi7Gp8nIL
— Captain Faibik (@CryptoFaibik) July 17, 2024
Symmetrical Triangle Pattern
The symmetrical triangle pattern on XRP’s weekly chart is characterized by converging trendlines. The upper trendline descends while the lower trendline ascends, indicating a consolidation phase. XRP is nearing the triangle’s apex, where the price faces increasing pressure from both trendlines.
The upper trendline serves as a crucial resistance level that XRP bulls aim to surpass. If XRP breaks above this trendline, a bullish move is expected, potentially reaching a target of approximately $2.50. This represents a 331.17% increase from the breakout point.
Historical Context and Potential Repetition
Another analyst, JackTheRippler, draws parallels to a similar symmetrical triangle pattern from 2017. During that period, XRP experienced a massive breakout, resulting in a 60,000% price increase. He suggests that the current setup could repeat this historical movement.
The same movement happened back in 2017. #XRP could repeat the 60,000% breakout!
Hit the like button if your bags are packed! 💰 pic.twitter.com/cYZ8I7meX5
— JackTheRippler ©️ (@RippleXrpie) July 19, 2024
Per Jack’s chart, the current symmetrical triangle pattern, spanning from 2018 to 2024, indicates a long-term consolidation phase.
Development Activity and Price Volatility
Adding to the speculation, Santiment reports a substantial increase in daily active addresses and network growth on the XRP network. The daily active addresses reached 47,363 on July 18, 2024, the highest since March 9.
Simultaneously, network growth, indicated by the number of new XRP wallets created, saw 1,721 new wallets on the same day, the highest since March 30.
The spikes in daily active addresses and network growth suggest increased user engagement and adoption of the XRP ledger, potentially leading to higher demand and price appreciation. Historical data shows that similar increases in network activity often coincide with significant price movements.
Community Perspectives and Future Projections
It is important to note that the crypto community recently addressed misconceptions about Ripple’s periodic XRP sales and their impact on the price. Notably, Ripple, holding the largest share of XRP, unlocks 1 billion XRP monthly.
Despite re-locking 80% in escrow, some community members believe these sales suppress the coin’s price.
However, in response, Mickle, a wealth advisor on X, dismissed these allegations, emphasizing several factors that suggest Ripple’s periodic sales have a minimal impact on the price of XRP. Mickle explained that Ripple carefully manages its sales to prevent overwhelming the market with large quantities of XRP.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
