XRP bulls are currently seeking to break through a key trendline barrier on the weekly chart. This resistance level is significant because it marks the peak of a symmetrical triangle formation. According to Captain Faibik, a successful breakout could cause a significant boost in prices.
He underlined that if XRP breaks out of the current consolidation phase, it could reach unprecedented heights.
Source: Captain Faibik
Triangle Pattern in Symmetry
The week by week chart of XRP appears a symmetrical triangular pattern with focalizing trendlines. The higher trendline falls, while the lower trendline rises, signaling a consolidation phase. XRP is approaching the triangle’s apex, where the price is under growing pressure from both trendlines.
The top trendline is a critical hurdle level that the bulls in XRP want to cross. If XRP breaks above this trendline, a positive rise is expected, possibly touching a target of around $2.50. This is an increase from the breakout point of 331.17%.
Historical Context and Potential Recurrence
Another observer, Jack The Rippler, sees parallels with a similar symmetrical triangular pattern from 2017. During that time, XRP saw a tremendous breakout, resulting in a 60,000% price surge. He thinks that the current situation may duplicate this historical process.
According to Jack’s graphic, the current symmetrical triangular pattern, which spans from 2018 to 2024, represents a long-term consolidation phase.
Development Activity and Price Volatility
Santiment has indicated a critical increment in day by day dynamic addresses and arrange development on the XRP arrange, fueling more hypothesis. On July 18, 2024, the number of daily active addresses peaked at 47,363, the highest since March 9.
Sourece: XRP Santiment
The increases in daily active addresses and network expansion indicate more user engagement and adoption of the XRP ledger, which could lead to higher demand and price appreciation.
Community outlook and future projections
The cryptocurrency community recently addressed concerns about Ripple’s periodic XRP sales and their impact on pricing. Notably, Ripple, which owns most XRP, unlocks one billion XRP per month.
Some community members believe these sales are suppressing the price of the coins, even though 80% of the coins are re-locked in escrow.
However, Mikkel, a wealth advisor at X, refuted these allegations and cited several facts that show that Ripple’s occasional sales have no effect on the price of XRP. Mikkel said that Ripple carefully controls its sales so as not to flood the market with large amounts of XRP.
