XRP Breaks Out of Symmetrical Triangle, Eyes $1.29 Target

XRP is showing early signs that it has regained bullish momentum after breaking out of a structure that has suppressed its price for several weeks.

The coin’s bullish price action over the past few days has aided this breakout. On Monday, XRP recorded its fourth consecutive daily green closing, with momentum coming from the resurgent Bitcoin.

Today, XRP has extended its bullish push, further rising by 2% at the time of writing. This has confirmed its breakout from a multi-week symmetrical triangle.

Notably, the symmetrical triangle began forming on June 15, when XRP made a lower high of $1.29. From then on, a series of lower highs and higher lows continued to form, with prices starting to compress within the structure’s lower and upper boundaries.

After the last lower high to $1.12 on July 15, volatility dropped further, with longer swings replaced by indecision among buyers and sellers. This hinted at an imminent breakout, with the resistance at $1.13 emerging as a key breakout point.

The recent upward momentum over the past few days has seen buyers gain control of the market. They pushed XRP to the neckline resistance and finally past the more than one-month-old upper descending trendline. This breakout occurred on Monday, with the sustained uptrend today confirming the resistance breach.

Breakouts at times are not straightforward. In some cases, an asset experiences a mild consolidation around the breakout point and then records a strong uptrend afterwards. Some other cases see the coin break higher and pull back to retest the neckline resistance before further upside.

In either case, what is most crucial is to trade above the breakout point. If XRP does this, resistance areas at higher prices come into focus. The first major area to watch is the lower high formation at $1.18, where the early July bullish momentum stalled. Breaking above this level confirms buyers are in control of market proceedings.

The next upward target is at $1.29, where the symmetrical triangle started to form. XRP would need to rally by 14% to reclaim this key area. A sustained uptrend above this level might confirm that XRP may have formed a durable bottom and could kickstart the next bullish phase.

History further suggests that XRP could rally higher. For context, in the past three Julys in the midterm election year, XRP has increased by an average of 14%. In one case, in July 2014, it closed 34% higher than its opening price that month.

This suggests that XRP could visit higher prices, spurred by the historical precedent and the latest triangle breakout.

Renewed buying pressure also provides additional fuel. Over the past 7 days, market users have withdrawn a net of $32 million worth of XRP from exchanges, suggesting accumulation.