O XRP Price Sees Another Triangle Formation on its chart that could point to an imminent recovery. An important fact about this triangle formation is the fact that it led to a significant rally seven years ago and if history repeats itself, then XRP could be poised for a bull run.
XRP triangle formation signals bullish continuation
In an analysis on TradingView, crypto analyst TradingShot pointed that XRP price is seeing another triangle formation. This formation results from the culmination of a series of indicators, all of which turned bullish during this period.
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The indicators pointed out by the crypto analyst include the price closing below the 1W MA50 and 1W MA200. Although at first glance this may seem pessimistic, it may be a small sign that drives the price up as investors begin to return to low prices. This is also obvious from the drop in the RSI from 1W to 40.00, as historically, this indicator at this level has always presented a buying opportunity.
Furthermore, the crypto analyst points out that the XRP price is currently testing the bottom with the higher lows trendline. All of these have come together to form a triangular structure that has not been seen since 2013-2017.
This triangular structure is important given that it last appeared in 2013 and finally erupted in 2017, the XRP price went on to reach new all-time highs. Therefore, the appearance of this triangular structure this time could signal the start of another uptrend that also pushes the altcoin price to new all-time highs.
How high can the price go?
In the scenario where the XRP price follows the 2013-2017 trend and a breakout occurs, the crypto analyst sees the price reaching a new all-time high. However, for this to happen and for the upward trend to be confirmed, the price will have to surpass the 1W MA200, as explained by the analyst.
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In a case like this the altcoin breaks this important level, TradingShot puts the price at up to $4.5. Such a move would mean an increase of more than 800% in the value of where the XRP price is currently at $0.47.
However, as with any bullish scenario, there is also the possibility that the trend may not materialize. If price does not break the 1W MA200, the crypto analyst reports “that the XRP army will need a narrative of necessity to cling to as the long-term pattern would have failed them.”
Featured image created with Dall.E, chart from Tradingview.com