- XRP price has established two legs of a triangle.
- If the technicals are correct, XRP could rally to $0.56 and then experience a sharp sell-off.
- Invalidation of the triangle thesis targeting $0.56 iis a breach below $0.4564.
Ripple’s XRP price could be on its way toward $0.56. Still, caution should be applied as the technicals suggest the uptrend could be the final wave before a reversal.
XRP price back to $0.56
XRP price could set up a 14% rally targeting the recently established monthly high at $0.5590. On Monday, September 26, the bulls rebounded after an early morning sell-off. The RSI shows a divergence between the current lows and the previous swing at $0.4564. If the newfound low at $0.4576 holds as support, a triangle is likely underway for the digital remittance token.
XRP price currently auctions at $0.4745. Amidst the consolidation, the volume is still reading less than the last 75% bull run that occurred last week. The technicals suggest that Ripple will remain range bound for a few more days between $0.45 and $0.51. Using the triangle’s largest swing, a 14% rally could occur targeting the $0.56, but currently, the confirmation needed would be a breach above the September 25 swing high at $0.5215.
XRP USDT 2-Hour Chart
Investors should remember that triangles are usually the last pattern displayed before a trend reversal occurs. While the $0.4564 holding as support is good for short-term bullish scalpers, the uptrend since the low $0.325 could be in jeopardy in the long run. The bears could jump into the market with extreme force near the $0.56 zone. Such a decline would result in a 30% dip in the current XRP price.
Invalidation of the triangle thesis targeting $0.56 is a breach below $0.4564. If the bears breach this level an additional 11% decline targeting previous resistance at $0.41 would be a probable bearish target.
In the following video, our analysts deep dive into Ripple’s price action, analysing key market interest levels. -FXStreet Team