The price of XRP has been declining since the announcement of the SEC lawsuit. However, while the whole price movement was reversed within a matter of weeks or even days. When looking at the cryptocurrency’s price movement, XRP seemed to be preparing for a comeback.
Consolidating in an ascending triangle, the price of XRP was forecasting a rise of up to 100%. This push would have the potential to push XRP to its levels before the lawsuit was announced.
4 hour XRP chart
Source: XRPUSD on TradingView
The attached chart shows that XRP has been in an ascending triangle consolidation pattern since the end of December. Price attempted to cross the horizontal triangle trendline twice, but failed. This failure pushed the price down towards the lower trendline of the triangle. At the time of going to press, the price is rebounding from this trendline. It looked bullish as it broke through short, medium and long EMAs.
A further rebound from here could be the support needed for the bulls to push higher towards the upper trendline of the channel. Therefore, we can expect a 10% to 20% increase in XRP within a day or three.
However, as indicated by the RSI and Stochastic RSI indicators, there was sloping resistance forming a series of lower highs. This indicates that this uptrend would be a challenge. The MACD indicator pointed out that the buyers are pushing for a reversal as the fast line nears the signal. They are heading for a potential bullish cross. In addition, the OBV indicator also showed an increase in volume, which supported the recent surge.
The ascending triangle
The target of an ascending triangle pattern equals the height of the XRP price between the horizontal trend line. The first test of the lower trendline. From the graph, it seemed clear that it was 117%. Measuring 117% from the top of the triangle has shown that the target for XRP will be $ 0.76. It should be noted that this is possible if XRP crosses the upper trendline and retests it. On top of that, there appeared to be another resistance around the $ 0.60 level, resistance that XRP needs to overcome.
Failure to clear the pattern will invalidate the potential surge by 117%. Breaking critical support at $ 0.2276 would invalidate not only the ascending triangle pattern, but also the surge by 117%.
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