- Ripple’s (XRP) price has been steadily declining since March 11, forming a descending triangle pattern.
- XRP is trading close to the upper line of the descending triangle, signaling a potential bullish breakout.
- The MACD indicator suggests a bullish crossover, and if XRP’s weighted sentiment remains positive and demand continues to climb, its price may rally to $0.49.
Ripple’s (XRP) price has been on a steady decline since it reached a year-to-date high of $0.72 on March 11, with the token’s value falling by 7% over the past month.
This recent downward trend has led to the formation of a descending triangle pattern. XRP is now attempting to break out of this pattern.
XRP Approaches Resistance as Bullish Sentiment Grows
At the time of writing, XRP is trading at $0.48, close to the upper line of its descending triangle, which has been acting as resistance since May 22.
A descending triangle is a bearish pattern that forms when an asset’s price makes a series of lower highs while maintaining a relatively flat support level.
When an asset’s price attempts to cross above the upper trendline of this triangle, it indicates a potential bullish breakout. If the breakout is accompanied by an increase in trading volume, it confirms a possible trend reversal from bearish to bullish.
In the past few days, XRP has witnessed a surge in daily trading volume. Over the last 24 hours, the altcoin’s trading volume has reached $775 million, representing a spike of over 30%.
Furthermore, XRP’s weighted sentiment has flipped to positive for the first time since June 21. This metric takes into account the overall mood of the market regarding an asset, considering both the sentiment surrounding the asset and the volume of social media discussions.
A flip from negative to positive weighted sentiment suggests a shift in market sentiment from bearish to bullish. Currently, XRP’s weighted sentiment stands at 0.68.
