After breaking below $3, the XRP price seems to be entering another triangular pattern that may eventually break out. This pattern on the 4-hour chart began in July and may naturally close in the coming weeks, especially as sellers seem to be struggling at this level.
XRP support levels to watch
Anonymous cryptocurrency analyst TheSignalyst notes that an interesting pattern has appeared on the price chart of XRP as it falls into the bearish zone. The analyst refers to this as a 'perfect triangle' pattern and believes there is a possibility of a breakout at the end of this pattern.
First, TheSignalyst emphasizes that the XRP price has been hovering upward within a typical symmetrical triangle since then. This has also occurred on the 4-hour chart, where both bulls and bears are struggling to defend the next major level.
Bulls continue to work hard to hold above the $2.78 support level, while the price continues to decline due to selling pressure. Meanwhile, bears are increasing resistance within the triangle, and the two trend lines may cross soon.
So far, bears seem to have the upper hand as the XRP price continues to decline, and the altcoin is currently testing the lower bound of the triangle. With increasing pressure, bulls must hold this lower bound to rebound. If this level is maintained, analysts say XRP may see a rebound and eventually approach the upper bound.
If a rebound occurs, the price of XRP could rise more than 14% and test the $3.2 level again. Bears are expected to appear at this resistance level again, and sellers need to push back at this level to invalidate the upward trend.
However, if the downtrend line fails to hold above $2.78 and bears can break below this level, it could signal a continued downtrend. A break below this level would invalidate the 'perfect triangle' structure and could push the XRP price back to $2.5, where significant buying support exists.
