XRP Consolidates: Bears and Bulls Battle for Price Breakout!

• Ripple [XRP] has been in a period of consolidation since January 23, forming a symmetrical triangle pattern on the three-hour chart.
• A patterned breakout on the upside could offer more gains and target the $0.4445 level, offering a potential 7% hike.
• However, bears could inflict a bearish breakout targeting the $0.3769 level and invalidate the above bullish inclination.

Ripple [XRP] has been in a period of consolidation since January 23, forming a symmetrical triangle pattern on the three-hour chart. At press time, XRP’s value was $0.4105 and was close to inflicting a patterned breakout. A patterned breakout on the upside could offer more gains and target the $0.4445 level, offering a potential 7% hike.

The Relative Strength Index (RSI) value of 49 indicates that XRP’s structure was almost neutral. XRP bulls could be tipped to break above the symmetrical triangle if Bitcoin [BTC] secures the $23.5K zone and surges upwards. However, bears could inflict a bearish breakout targeting the $0.3769 level and invalidate the above bullish inclination. The drop could be checked by the 100-EMA (exponential moving average) line. So far, two false bearish breakouts have retested the 100-EMA (blue line). A similar trend could see another false breakout retest the line before dropping down to the bearish target.

Santiment data indicates that XRP daily active addresses spiked recently but recorded a drop by press time. This indicates that the number of addresses exchanging XRP has decreased. The decreased volumes could be seen as a sign of short-term profit-taking. Investors and traders should track Bitcoin’s price action, especially on key price levels of $23.5K and $22K, in order to make informed trading decisions.

Overall, XRP is in a period of consolidation, with a potential breakout on the horizon. A successful breakout could offer more gains while a false breakout could drag XRP’s value down. Investors and traders should keep an eye on Bitcoin’s price movements in order to determine the direction of the next price movement.