According to Alicharts, XRP, the fourth-largest cryptocurrency by market capitalization, might be getting ready for a breakout.
In a recent tweet, Ali highlighted that XRP is currently consolidating within a well-defined symmetrical triangle on the daily chart. As the price moves closer to the apex, the market energy is coiling, suggesting that a major shift in volatility might be approaching.
Based on the height of the formation, a decisive breakout could result in a 26% price move, which might be in either direction, given that triangles are neutral patterns.
Ali highlighted key levels for traders to watch as XRP price awaits a major move. He pointed to the range between $1.35 support and $1.45 resistance as a no-trade zone. This is because trading here often leads to being caught in fake-outs.
Traders can wait for a confirmed daily close outside of this range, as a close above $1.45 will target the $1.82 level, while a close below $1.35 might eye the $1 level.
XRP might eye a 26% move once its price makes a daily close beyond the $1.35 and $1.45 range.
XRP faces impending price move
In a similar vein, CryptoQuant sees an impending rally brewing for XRP, citing an increasing gap between the leverage ratio and price. Often, an aggressive move follows such increasing divergence.
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The current setup suggests the leverage ratio is clearly low and moving sideways. In this case, leverage has been flushed out and speculative excess reduced, yet the price hasn’t fully crashed. This implies that when new long-side leverage starts to build, the price reaction is likely to be stronger than usual.
With such a clear gap, the market seems to be calm but is actually in a phase of building potential energy. If the ratio begins to increase, it may not just lead to a price rise, but a rapid, squeeze-driven move. Periods like this typically don’t result in slow climbs; they tend to produce sudden and major price surges.
