The Ripple (XRP) price is quickly approaching the end of a pattern in place since June 2022. A decisive movement outside its confines is expected soon.
On March 3, Ripple Labs CEO Brad Garlinghouse joined calls for the U.S. and its financial institutions to embrace crypto. He stated that American innovation would suffer by Fintech and crypto companies leaving the United States.
Next, Brook Entwistle, a Ripple executive, stated that central bank digital currencies (CBDC) have strong utility, and Ripple is in talks with numerous banks about potential CBDC launches.
However, there was no news regarding the Securities and Exchange Commission (SEC) lawsuit against the firm, which is likely to be the most important factor in the future of Ripple and XRP.
Ripple XRP Price Approaches End of Pattern
The XRP price has traded inside a symmetrical triangle since June 2022. The triangle’s resistance and support lines have been validated numerous times.
However, since the beginning of the year, the XRP price has made numerous attempts at breaking out. Since lines get weaker each time they are touched, the price action suggests that an eventual breakout from this triangle is the most likely scenario.
Moreover, the daily RSI has generated bullish divergence (green line), another sign of a potential bullish reversal. Finally, the XRP token price created a long lower wick on March 3.
The end of the pattern is projected at the end of the month, so a decisive move is expected to occur by then.
If the digital asset price breaks out, the next closest resistance would be at $0.43. However, if a breakdown occurs instead, the XRP price could fall to $0.30.
Ripple XRP Trades in Corrective Pattern
The price history from the short-term four-hour chart shows that the Ripple price has traded inside a descending parallel channel since Jan. 23. Such channels usually contain corrective movements, meaning that an eventual breakout is expected.
Moreover, the XRP price is trading in the upper portion of this pattern, further solidifying the possibility of a breakout.
Since the channel’s slope coincides with that of the long-term resistance line, a breakout from the channel would also lead to a breakout from the resistance line.
To conclude, the most likely XRP price forecast is a breakout from the long-term triangle and an increase to $0.43. A breakdown below the support line would invalidate this outlook and could trigger a fall to $0.30.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
