●Ripple price is consolidating within the confines of a symmetric triangle on the daily as well as the three-day timeframes
●XRP could breakout if this neutral technical formation is activated, with the next directional bias to be revealed after absconding.
●Investors looking to enter long or short positions should wait for the breakout, with $0.6873 and $0.5773 being critical.
Ripple (XRP) price has been an underperformer since early November, with what started as a downtrend, culminating to a multi-week consolidation. With the price action filling up a symmetric triangle, a big move may be underway for XRP price soon.
XRP coils up for a breakout
XRP price action could fill a symmetric triangle soon, upon which a breakout would confirm the next directional bias. As there is still some room before the apex of the technical formation, investors can expect some more consolidation before the forecasted breakout.
On the daily timeframe, Ripple price is testing the upper boundary of the symmetric triangle, with the position of the Relative Strength Index (RSI) above the 50 level, coupled with the presence of green histogram bars of the Awesome Oscillator (AO) suggesting that the upside potential remains alive.
Increased buying pressure could see XRP price overcome the upper boundary of the triangle to confront the supply barrier between $0.6544 and $0.7195. To confirm the continuation of the uptrend, the price must record a daily candlestick close above its midline of $0.6873.
In a highly bullish case, the gains could extend for Ripple price to flip this order block into a bullish breaker, confirmed by a move above the $0.7333 barricade. In extremely ambitious cases, the climb could extend for the price to venture into the second supply zone between $0.7651 and $0.8234. A break and close above its midline at $0.7954 would confirm the continuation of the uptrend.
XRP/USDT 1-day chart, Source: TradingView.
On the other hand, increased seller momentum could see Ripple price drop below, losing the support offered by the lower boundary of the channel. A break and close below the $0.5773 support level would invalidate the bullish outlook, setting the tone for a continued fall to the $0.4615 support floor.