- A breakout above the pattern could push XRP towards $3.
- Buying pressure increased on the token, but market sentiment turned bearish.
After a weeklong of price upticks, XRP bears stepped up their game in the last 24 hours by pushing the token down. However, this just might be the beginning of a new bull rally.
XRP was on the verge of breaking above multi-year bull patterns. Let’s assess XRP’s metrics to find whether a breakout is likely to happen.
XRP’s multi-year pattern
CoinMarketCap’s data revealed that the token’s price had surged by more than 5% in the past seven days. But the bears took control of the market in the past 24 hours as XRP witnessed a nearly 2% price dip.
At the time of writing, the token was trading at $0.5965 with a market capitalization of over $33.5 billion, making it the 7th largest crypto.
Meanwhile, World of Charts, a popular crypto analyst, posted a tweet highlighting a multi-year bullish triangle pattern on the token’s chart. The pattern appeared in 2020, and since then the token’s price has been moving inside it.
Source: X
As per the tweet, XRP was exhibiting remarkable strength, consolidating within a multi-year symmetrical triangle formation. This pattern suggested a high-probability breakout, which could unleash a massive bullish wave, potentially propelling the price towards $3 Or higher soon.
The tweet also pointed out quite a few factors that could trigger a bull rally, such as buying pressure, market sentiment, etc.
XRP’s road ahead
Therefore, AMBCrypto planned to assess these factors to find out whether they support the possibility of a bullish breakout. AMBCrypto’s analysis of Santiment’s data revealed a rise in XRP’s trading volume along with its price.
Source: Santiment
Buying pressure on the token increased, which was evident from the drop in its supply on exchange. The fact that investors were buying the token was further proven by the spike in its exchange outflow.
Apart from that, whales were also actively trading XRP as the number of whale transactions increased over the last few days. However, market sentiment around the token turned bearish.
This seemed to be the case as the token’s weighted sentiment dipped into the negative zone. The token’s social volume also declined, reflecting a dip in its popularity.
Source: Santiment
AMBCrypto then checked XRP’s daily chart to find out what market indicators suggested.
Read Ripple’s [XRP] Price Prediction 2024 – 2025
We found that the token’s Chaikin Money Flow (CMF) registered a downtick and was headed towards the neutral mark.
The Relative Strength Index (RSI) also followed a similar trend, suggesting that XRP might take longer to break above the multi-year bull pattern.
Source: TradingView
