XRP Breaks Below Triangle—Will Drawdown Extend To $1.14?

A cryptocurrency analyst has highlighted how XRP has recently dropped under a Symmetrical Triangle, potentially setting a target of $1.14.

The main feature of the pattern that separates it from other triangular channels is that it involves trendlines that approach each other at a roughly equal and opposite slope. Thus, as the asset trades inside this channel, its range shrinks to a midpoint.

Like with other consolidation patterns in TA, the upper level of a Symmetrical Triangle is also assumed to be a source of resistance, while the lower line that of support. A break out of either of these trendlines can signal a continuation of trend in that direction.

Now, here is the chart shared by Martinez that shows the Symmetrical Triangle that was earlier forming in the 1-day price of XRP:

As displayed in the above graph, XRP spent a couple of months inside the Symmetrical Triangle, but as the range became tight in May, a breakout finally took place. The escape, however, came in the down direction, with the asset slipping below the support level.

As mentioned before, ventures out of a Symmetrical Triangle can signal the continuation of trend in that direction. This means that the breakdown of support can be a bearish signal.

From the chart, it’s apparent that the pattern appears to have held for XRP so far, with bearish action continuing since the lower level gave out. Based on the trend, the analyst has put a target of $1.14 for the cryptocurrency. It now remains to be seen whether the coin will march toward this level or if its trajectory will reverse.

The cryptocurrency has been going down since this reversal. “If $XRP continues respecting this parallel channel, the mid-range near $0.73 could become an attractive accumulation zone,” noted Martinez.

At the time of writing, XRP is floating around $1.23, down nearly 8% in the last seven days.