Key Takeaways
- XRP is consolidating within a tight price range.
- A daily candlestick close outside of the $1.17-$1.10 zone should determine where prices are heading next.
- Interestingly, some large whales have been exiting the network over the past few days.
As a new monthly close approach, it appears that volatility is back among the top cryptocurrencies by market cap. Although XRP remains stagnant, the technicals show a high probability of a significant price movement.
XRP Consolidates Before the Breakout
Ripple’s XRP token continues to consolidate within a tight trading range that is getting narrower over time.
The sixth-largest crypto’s price action over the last twenty days appears to have led to the formation of a symmetrical triangle on the daily chart. A descending trend line can be drawn along with the swing highs, while a rising trend line developed along with the swing lows.
As XRP edges closer towards the triangle’s apex, it suggests that a major spike in volatility is about to take place. The measurement of the height of the technical pattern’s y-axis added to the breakout point projects a 31.7% price movement in either direction.
Only a daily candlestick close outside of the $1.17 to $1.10 range will determine where XRP is heading next. A spike in buying pressure that results in a break of the overhead resistance could see the asset rise to $1.55, but losing the $1.10 level as support may lead to a correction towards $0.75.
The number of addresses holding more than 10 million XRP has decreased by 1.5% over the past three days. Roughly five whales have left the network or redistributed their token within such a short period.
Still, only a daily candlestick close outside the $1.17 to $1.10 price pocket will determine where XRP heads next.
