XRP has dropped 4% in the past 24 hours, currently trading at $0.4595.
Analyst “Crypto Rover” shared a five-year consolidation pattern for the XRP price action.
Since July 2023, most digital assets have outperformed XRP.
XRP’s price action is at a critical juncture, with technical analysis hinting at a potential breakout. However, the cryptocurrency faces both bullish and bearish sentiment within the market, leaving its future trajectory unclear.
In an X post, an analyst highlighted a five-year pattern in play for the XRP token, as his followers weighed in. As shown in the chart below, the leading digital asset has formed a symmetrical triangle trading pattern, suggesting a breakout or breakdown may follow.
A symmetrical triangle is a common chart pattern. Crypto Rover said that the XRP price action has been consolidating between the upper and lower regions of the triangle for five years, which means that the breakout or breakdown could be significant.
Once the price action reaches the breakout point, investors need to monitor trading volumes. If the volume is not high enough, the breakout could be false. Traders often advise investors to wait for the first retest of the breakout point, as it serves as support or resistance for the asset’s price action.
Some X users following the analyst commented that XRP was just another “stablecoin” and has been one of the least volatile digital assets. Many stated that the altcoin is “dead” and will not recover. However, some cryptocurrency supporters also believe that, as one of the first digital assets, XRP will continue to lead the sector and “will not go anywhere.”
Digital assets like Solana (SOL), up more than 600%, and Cardano (ADA), up 32.85%, have outperformed XRP, down 6% since July 2023, according to CoinMarketCap.
Despite securing legal wins against the SEC and the US state of California, altcoin has been one of the worst performers in the current cycle. XRP is currently trading at $0.4595, down 4.24% amidst a downtrend in the border market.
Source: TradingView
The chart above includes the Relative Strength Index (RSI), which is a good indicator of bearish/bullish movements. The line indicates a downward trend, while the RSI hovers just above 35. This confirms that soon, we may see XRP becoming oversold in the market, and lower prices might follow.
However, such market crashes also provide a good entry point for investors with increased chances of making a profit in the short term.
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