A cryptocurrency analyst has highlighted how the $0.90 XRP level aligns with the support level of a long-term pattern in the asset’s monthly price.
XRP Has Potentially Been Following A Long-Term Ascending Triangle
In a new post on X, analyst Ali Martinez has shared a technical analysis (TA) channel forming in the 1-month price of XRP. The pattern in question involves two trendlines: a flat upper level and an upward-facing lower level. A channel involving converging trendlines like this is popularly known as a triangle. In the case of this particular triangle, the setup resembles that of a specific type: the Ascending Triangle.
The fact that the lower level has a positive slope means that as the price trades inside an Ascending Triangle, its range shrinks to a net upside. This is the reason behind the pattern having “ascending” in its name.
Like with other consolidation patterns in TA, the upper level of the Ascending Triangle is considered to be a source of resistance, while the lower one that of support. If the asset manages to break past either of these boundaries, it might experience a continuation of trend in that direction.
Now, here is the chart shared by Martinez that shows the Ascending Triangle that the monthly price of XRP has been trading inside for the last few years:
As displayed in the above graph, the 1-month XRP price retested the resistance level of the Ascending Triangle last year and ended up being rejected down. Since then, the cryptocurrency has experienced a notable drawdown, with its price now closer to the bottom level than the top one.
In the chart, the analyst has extended the current trajectory of the asset to showcase a path that it could possibly end up following in the coming months. From this, it’s apparent that XRP could end up retesting the lower level around $0.90.
“I’m watching $0.90 closely on $XRP,” noted Martinez. “If price gets there, I think it could offer a compelling long-term buying opportunity.” It now remains to be seen whether the current bearish trajectory of the cryptocurrency will continue for a duration long enough for this level to be retested.
Triangles aren’t the only class of consolidation patterns in TA. Another major category is made up of Parallel Channels, patterns that involve two parallel trendlines. As the analyst has pointed out in another X post, Ethereum has been trading inside one such channel on the weekly timeframe.
As is visible in the chart, Ethereum has traveled 75% of the way down the channel with its recent drawdown. The next relevant level is located at $1,096, corresponding to the bottom trendline.
XRP Price
XRP went down to a low of $1.05 earlier, but its price has since bounced back a bit to $1.15.