looked primed for a spike in volatility as it edged closer toward the apex of a symmetrical triangle.
- XRP was consolidating within a tight price range.
- A daily candlestick close outside of the $1.17-$1.10 zone would determine where prices were heading next.
- Interestingly, some large whales have been exiting the network over the past few days.
As a new monthly close approached, it appeared that volatility was back among the top cryptocurrencies by market cap. Although XRP remained stagnant, the technicals showed a high probability of a significant price movement.
XRP Consolidates Before The Breakout
Ripple’s XRP token continued to within a tight trading range that was getting narrower over time.
The sixth-largest crypto’s price action over the last 20 days appeared to have led to the formation of a symmetrical triangle on Tuesday's daily chart. A descending trendline can be drawn along with the swing highs, while a rising trendline developed along with the swing lows.
As XRP edged closer towards the triangle’s apex, it suggested that a major spike in volatility was about to take place. The measurement of the height of the technical pattern’s y-axis added to the breakout point projects a 31.7% price movement in either direction.
Only a daily candlestick close outside of the $1.17 to $1.10 range would determine where XRP would be heading next. A spike in buying pressure that results in a break of the overhead resistance could see the asset rise to $1.55, but losing the $1.10 level as support may lead to a correction towards $0.75.
Despite the ambiguous outlook that the symmetrical triangle presented, data from behavior analytics platform Santiment showed that whales have been booking profits.
The number of addresses holding more than 10 million XRP has by 1.5% over the past three days. Roughly five whales have left the network or redistributed their token within such a short period.
The sudden decline of large investors on the network was a negative sign for a sustainable uptrend, especially when considering they hold more than $11 million worth of XRP. A further increase in selling pressure could push XRP below the underlying support at $1.10, resulting in a 31.7% retracement.
Still, only a daily candlestick close outside the $1.17 to $1.10 price pocket would determine where XRP heads next.
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