• XRP traders might take advantage of this pattern to make a profit

  • The absence of volatility in the XRP market has prevented huge price movements in recent days, although the digital asset has swayed in either direction in response to broader market cues. XRP had slipped somewhat as a result of a wider crypto correction at the time of writing, but it was on the verge of breaking south of its symmetrical triangle. The digital asset was trading at $0.6744, down 2% over the previous 24 hours.

    The 4-hour chart of XRP

    The 4-hour 20 (red) and 50 (yellow) Simple Moving Average lines, which worked as support points, allowed XRP to move south from the upper trendline of its symmetrical triangle, but the pattern remained intact. If these barriers are not held, XRP will be vulnerable to a moderate sell-off in the following sessions.

    The $0.662-area, which clashed with the hourly 200-SMA (not shown) and also witnessed interplay with the 50-SMA as indicated on the chart, was an important level to sustain. A closure below $0.662 would send XRP down to its swing low of $0.633 from July 2nd, whilst a greater pullback would trigger $0.584 support. The aforementioned supports have generated some interest for XRP, and buyers would likely counter an extended sell-off at current levels, according to Visible Range.

    Reasoning As prices inched closer to the bottom trendline of their pattern, MACD was on the verge of a bearish crossover, and its histogram indicated waning bullish momentum. A move below 45-40 would signal bearish strength, as the Relative Strength Index went south from neutral area. The Directional Movement Index had not yet switched to a positive posture, but it had converged at the time of publication. A bearish crossover of the -DI and +DI lines would signal a market trend change.

    Traders might set up short transactions in anticipation of a larger wave of selling pressure, even though evidence of a definitive decline had yet to appear. Waiting for XRP to break below its SMAs would be a safe entry position.

    Levels to be aware of: $0.660 is the entry fee. $0.6337 is the profit target. $0.70 as a stop-loss 0.68x Risk/Reward

    Conclusion The possible breakdown of XRP from a symmetrical triangle provided opportunities for market shorting. The take-profit level was established at $0.6337, which was a place where the Visible Range showed a lot of interest in XRP. The stop-loss was set at $0.70, which was the swing high on July 4th.

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