XRP is shaping a symmetrical triangle pattern level that is often considered a continuation pattern, but it can resolve both ways. The emerging pattern level offers some clarity to the uneven XRP price action over the last month and solidifies the XRP short-term neutral outlook for the international settlements token.
Over the last five weeks, XRP price has closed with two Doji candlesticks pattern, and Ripple may close with another one this week. The indecision exemplified by the support pattern and amplified by the fact it is occurring on a weekly chart presents a challenge for the XRP bullish narrative and an upward resolution to the emerging symmetrical triangle pattern.
The bullish Ripple XRP price outlook can be renewed with a rally above the triangle’s upper trend line at a price of $1.67 and a daily close above last week’s doji high at $1.76. The respite from the indecision will put buyers back in control of Ripple XRP and project higher returns for the altcoin.
Immediate resistance upon breakout will be the April high at a price of $1.96, followed closely by the psychologically important $2.00 and the 61.8% Fibonacci retracement level of the 2018-2020 decline at $2.08. Combined, the three levels present a formidable challenge for the bullish XRP narrative.
A successful price rally above the area of $2.00 puts XRP price in an excellent position to test the 78.6% retracement of the 2018-2020 decline at a price of $2.61, a gain of 80% from the price at the time of writing.
The clear potential of a positive resolution to the SEC case with Ripple, combined with rumors of an IPO following the case, has many investors focused on the all-time high at a price of $3.30. It has been proven this year by other cryptocurrencies that all-time highs can be a powerful magnet for altcoin price.
The bearish alternative for Ripple begins with a price break below the triangle’s lower trend line at $1.14. Still, the downside could be limited by the tactically important 10-week simple moving average at $1.04 and then the critically important at $1.00.
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