Ripple’s XRP Token Looks Ready To Break Out

 | Sep 01, 2021 12:50AM ET

XRP looked primed for a spike in volatility as it edged closer toward the apex of a symmetrical triangle.h3 Key Takeaways/h3

  • XRP was consolidating within a tight price range.
  • A daily candlestick close outside of the $1.17-$1.10 zone would determine where prices were heading next.
  • Interestingly, some large whales have been exiting the network over the past few days.

As a new monthly close approached, it appeared that volatility was back among the top cryptocurrencies by market cap. Although XRP remained stagnant, the technicals showed a high probability of a significant price movement.

h2 XRP Consolidates Before The Breakout/h2

Ripple’s XRP token continued to consolidate within a tight trading range that was getting narrower over time.

The sixth-largest crypto’s price action over the last 20 days appeared to have led to the formation of a symmetrical triangle on Tuesday's daily chart. A descending trendline can be drawn along with the swing highs, while a rising trendline developed along with the swing lows.

As XRP edged closer towards the triangle’s apex, it suggested that a major spike in volatility was about to take place. The measurement of the height of the technical pattern’s y-axis added to the breakout point projects a 31.7% price movement in either direction.

Only a daily candlestick close outside of the $1.17 to $1.10 range would determine where XRP would be heading next. A spike in buying pressure that results in a break of the overhead resistance could see the asset rise to $1.55, but losing the $1.10 level as support may lead to a correction towards $0.75.