The price of XRP is still consolidating between two critical converging trend lines. As the asset coils up, it is preparing for a major breakout, which will result in a spectacular run-up or run-down. On-chain measures, on the other hand, indicate that this move will most likely favor the bulls.
Ripple bulls are anticipating turbulence.
Since December 2021, the price of XRP has established two lower highs and two higher lows. The creation of a symmetrical triangle is revealed by drawing a trend line along these swing points. Although there is no breakout bias in this technical pattern, it anticipates a 46 percent rise by analyzing the distance between the first swing high and swing low.
When this distance is added to the breakout, the theoretical target for the setup is revealed. A bullish breakout would value XRP at $1.24, while a bearish breakout would value the remittance token at $0.362.
An informed guess is that the consolidation will last another week or two before a breakout. However, based on current market bullishness, XRP price is likely to have a bullish move when it breaks out of the symmetrical triangle.
According to the supply distribution map, XRP whales have been actively accumulating the remittance token. Between February 6 and 21, the number of whales with 10 million or more XRP tokens climbed from 317 to 337. This 6.3 percent gain is a proxy for their investment preferences, indicating that these investors are interested in XRP at the current price levels, implying that a bullish breakout from the symmetrical triangle is possible.
The optimistic outlook makes sense. However, market participants should be aware of the negative scenario in order to limit their risks. Triangles are frequently met with a fakeout before the price reverses in the intended direction. This is a possibility for XRP due to the liquidity available below the equal lows set around $0.509.
As a result, an alternate scenario calls for a temporary wick below $0.509, which would allow market makers to capture liquidity. This move will almost certainly result in purchasers acquiring XRP at a discount, igniting a bull movement.
In a worst-case scenario, the XRP price would show a daily candlestick close below $0.509. This move would result in a lower bottom, rendering the bullish thesis for the remittance token worthless. Such a pattern would imply that the decline would continue, pushing the XRP price toward the anticipated level of $0.362.