XRP broke out of its falling wedge formation but is still below its swing high of $1.30. A 24-hour retracement would form a symmetrical triangle, from which $1.60 may be obtained.
Moreover, the sentiment is anticipated to be positive following Ripple’s recent court victory against the SEC. XRP was trading at $1.25 and ranked sixth on CoinMarketCap at the time of writing.
Uncertainty abounded when XRP broke over an upper trend line bullish pattern. A throwback is likely if an asset breaks out of a low volume trend.
Also, a move south and a closing below the 20-SMA (red) would enable sellers to extend losses to $1.12. This would result in a symmetrical triangle. A successful breakthrough would target $1.60.
To avoid this scenario, XRP must close above $1.30. An early breakthrough would be extended, with goals slightly over $1.40. Retracements and closes below $1.05 would weaken XRP’s bullish structure.
After reversing overbought circumstances last week, the RSI seemed poised for another ascent. Some Awesome Oscillator momentum accompanied this.
The Directional Movement Index (+DI) traded above the -DI, indicating that XRP’s bullish run was not about to stop. If the RSI and AO continue to rise, a retest of $1.12 is unlikely.
Conclusion
A falling wedge pattern allows XRP to target $1.40. A new bottom below $1.120 would enable XRP to form a symmetrical triangle with higher breakout potential.
If the market continues in this direction, a 40% increase to $1.60 is possible in a few weeks.
The current XRP price today is US$1.25 for a 24-hour volume of trade of US$4,492,636,562 as per CoinMarketCap.
