The XRP price recently broke free from a two-month-long accumulation phase, indicated by its exit from a triangle pattern. This breakout resulted in an 11% gain, pushing the coin's price from $0.54 to its current trading level of $0.6. However, given the current market volatility, the question remains: can buyers sustain this momentum?
The completion of the triangle pattern sets the XRP price for another 12% surge. The $0.66 level stands as crucial resistance against buyers. The intraday trading volume in XRP is $1.56 Billion, indicating a 29% gain.
Over the last couple of months, the XRP price has primarily traded sideways within the trendlines of the triangle pattern. Typically, this pattern is considered a continuation pattern, suggesting a downward trend. However, buoyed by broader market sentiment, the XRP price broke through the upper trendline, signaling an early sign of a trend change.
The high-momentum breakout on October 23rd and a successful reset to check price sustainability on the 27th indicate that the XRP price is ready for a sustainable recovery. Despite the current market uncertainty, the XRP price has surged by a modest 0.3%, forming a neutral daily candle. According to this pattern, the coin price looks set for another 12% gain, potentially reaching the $0.655 level.
If the anticipated XRP price rally to $0.655 occurs, it would also hit the 50% retracement level of the correction phase that began in mid-July. Traders may face intense supply pressure at this level, which serves as a crucial point for sellers to resume the prevailing downtrend. However, a breakout above this barrier would reflect weakness in bearish momentum and could prolong the recovery trend to $0.75.
In conclusion, the XRP price breakout from the triangle pattern signals a prolonged recovery trend. While there may be resistance at the $0.66 level, the current market conditions and the potential retracement level suggest that the XRP price could continue to rise. Traders should closely monitor the price action and consider the possibility of a breakout above $0.655, which could indicate a further upward movement towards $0.75.
