Ripple XRP price may break out of the pattern
The Ripple (XRP) price is fast approaching the end of a pattern that has been in place since June 2022. A decisive move outside its boundaries is expected soon.
On March 3rd, Ripple Labs CEO Brad Garlinghouse joined the calls for the US and its financial institutions to embrace crypto. He stated that American innovation would suffer from Fintech and crypto companies leaving the US.
Subsequently, Brook Entwistle, a Ripple executive, stated that central bank digital currencies (CBDCs) have strong utility, and Ripple is in talks with a number of 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 nears end of pattern
The XRP price has been trading inside a symmetrical triangle since June 2022. The triangle’s resistance and support lines have been validated several times.
However, since the beginning of the year, the XRP price has made many attempts to break 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.
Also, the daily RSI has generated bullish divergence (green line), another sign of a potential bullish reversal. Finally, the XRP token price made a long lower week on March 3rd.
The end of the pattern is projected at the end of the month, so a decisive move is expected to happen by then.
If the digital asset price breaks out, the next closest resistance will be $0.43. However, if a breakdown occurs instead, the XRP price could fall to $0.30.
Ripple XRP is trading with corrective pattern
The price history from the short-term four-hour chart shows that the Ripple price has been trading in a descending parallel channel since January 23rd. Such channels usually contain corrective movements, which means that an eventual breakout is expected.
Moreover, the XRP price is trading in the upper part of this pattern, further strengthening the possibility of a breakout.
Since the slope of the channel coincides with that of the long-term resistance line, a breakout from the channel will 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 a rise to $0.43. A break below the support line would invalidate this outlook and could trigger a drop to $0.30.
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