Key takeaways:
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XRP’s macro outlook remains bullish, with technical scenarios projecting a cycle top above $20, according to one analyst.
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XRP’s symmetrical triangle signals a potential bullish breakout targeting $4.
XRP’s (XRP) price fell 22% to $2.72 from its multi-year high of $3.66 reached on July 18, before recovering to current levels around $3.
Has the popular altcoin finally topped out, or is there a stronger rally in the cards?
XRP macro outlook still “bullish”
XRP price action reveals a consolidation within a symmetrical triangle on the daily chart, suggesting that the altcoin may be preparing another bullish impulse, according to analyst XForceGlobal.
XRP price at “$20 remains the primary cycle target,” the pseudonymous analyst said in an X post on Wednesday.
Related: XRP 30% open interest drop may open buy zone below $2.50
Although the price still faces strong resistance around the $4 psychological level, “this does not alter the overall bullish outlook on the macro,” the analyst said, adding that XRP could now follow two possible scenarios.
In the first scenario, the recent pullback is similar to the ones seen in past cycles, where the price drops to create new levels of distribution before a major breakout.
In an accompanying video, XForceGlobal said that after an almost 50% pullback from Jan. 16 highs at $3.40, the price recovered to retest the level with the recent run-up to $3.66.
As such, the latest drawdown is another period of distribution, before making “one of the strongest moves to the upside,” the analyst added.
In the second scenario, XRP distribution will continue to complete the flat period between Wave 1 and 2, before making that “massive” Wave 3 to the upside.
“Essentially, we have two scenarios, in my opinion, that have the highest conviction probability, and I think we are very close to a much larger upward move,” XForceGlobal said, adding,
“There are just no signals supporting a larger sell-off to the downside.”
The target for XRP price is between $19 and $30 based on both scenarios, as shown in the charts above.
XRP symmetrical triangle breakout targets $4
Currently, XRP price is trading within a symmetrical triangle on the daily candle chart, data from Cointelegraph Markets Pro and TradingView shows
The price needs to produce a daily candlestick close above the upper boundary of the triangle at $3 to confirm a bull breakout. Above that, the next major resistance is the eight-year high at $3.66, which bulls must overcome to continue the upward trajectory.
The measured target of the triangle is $4, or a 34% increase from current levels.
The symmetrical triangle interpretation “makes sense when you look at the big picture for XRP,” said veteran trader Matthew Dixon in an X post on Tuesday.
An accompanying chart suggested that the consolidation within the triangle was part of a distribution phase between Waves 3 and 4 before a larger Wave 5 move toward $4.
As Cointelegraph reported, multiple technical charts point to a potential XRP breakout in the short term with targets between $4.40 and $6.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
