Similar to other cryptocurrencies, XRP faced pressure from bearish sentiments in the market over the past week. Nonetheless, there were indications of a modest recovery in the token’s value over the last 24 hours, with the price edging towards a potential bullish breakout.
XRP in a Phase of Consolidation
Although XRP suffered a 5% price decline last week, the upcoming days could paint a different picture for investors. A prolonged bullish symmetrical triangle pattern was identified on XRP’s chart, hinting at a period of consolidation.
A crypto analyst known as Amonyx highlighted the emergence of this pattern, which first surfaced in 2018, confining the token’s price movement within its bounds since then. Interestingly, a similar pattern was observed on the chart in 2015.
Back in 2017, XRP experienced a bullish breakout following the 2015 pattern, propelling the token to achieve an all-time high in the subsequent months. Therefore, if historical trends mirror the present scenario, investors could witness XRP scaling new peaks in the near future.
Currently, the token is testing the support level of the bull pattern, and a successful validation might pave the way for a push towards the resistance zone.
As of the time of writing, XRP was exchanging hands at $0.5304, boasting a market capitalization exceeding $29.8 billion, securing its position as the 7th largest cryptocurrency in the market.
Evaluating the Potential for XRP to Break Out Soon
Given the high probability of a bullish breakout, as implied by historical data, CryptoCrypto delved into the on-chain metrics of XRP. According to our scrutiny of Santiment’s data, XRP witnessed a decline in trading volume in tandem with its price in recent days.
Moreover, the open interest exhibited a similar downward trajectory. Typically, a decrease in open interest signals a potential trend reversal, serving as a bullish indicator in this context.
Furthermore, investors’ confidence in XRP appeared to have registered a slight uptick in the past week, reflected in the total number of XRP holders rising to 5.3 million.
Another positive metric was the growth in the long/short ratio, indicating a higher prevalence of long positions compared to short positions in the market.
However, an examination of Hyblock Capital’s data indicated that XRP must surpass the $0.58 mark to initiate a bullish breakout.