What to Know:
- XRP is forming a right-angled ascending triangle pattern, hinting at a potential breakout if key support holds.
- On-chain data reveals that XRP millionaires have been selling off tokens during the recent rally, but the price has remained stable.
- A bullish scenario could see XRP reaching $7 by early spring, contingent on maintaining the $2 support level.
The price of XRP is closely watched as it approaches a potential breakout, with analysts setting targets as high as $7. This forecast hinges on the digital asset maintaining its current momentum and holding above a critical support level. The formation of technical patterns and on-chain data are providing insights into XRP’s potential trajectory.
Analyst Ali Martinez notes that XRP is currently forming a right-angled ascending triangle on the two-week chart. This pattern suggests that if the base support holds, the price could have significant room to run. The critical level to watch is the $2 mark, which XRP has tested multiple times.
On-chain data reveals that wallets holding between 1,000,000 and 10,000,000 XRP have sold off a substantial number of tokens during the recent rally. This profit-taking activity from mid-tier whales is common when the price tests key resistance levels. The fact that XRP has not fallen below $2 despite this selling pressure is a positive sign.
The projected path, if the triangle pattern plays out, includes a series of price targets: $3.50, $4.20, and $4.80, before a final surge towards $7. This bullish scenario depends entirely on XRP maintaining its position above the $2 support level. A break below this level would invalidate the forecast.
As XRP navigates these technical and market dynamics, investors are closely monitoring its ability to maintain key support levels while capitalizing on bullish patterns. The potential for significant upside, coupled with the importance of specific price levels, makes XRP a focal point in the cryptocurrency market.
Source: Original article
