1. Ripple [XRP] is currently forming a symmetrical triangle pattern on the three-hour chart.
2. A bullish breakout above the triangle could provide more gains and target the $0.4445 level.
3. Investors should watch Bitcoin [BTC] price action, especially on key levels of $23.5K and $22K.
Ripple [XRP] has been rallying in recent weeks, but the price action has slowed down, ushering in short-term price consolidation. The cryptocurrency has formed a symmetrical triangle pattern on the three-hour chart and a patterned breakout on the upside could provide more gains. Currently, XRP’s value is $0.4105 and is close to inflicting a patterned breakout.
The structure of XRP is almost neutral as indicated by the Relative Strength Index (RSI) value of 49. If Bitcoin [BTC] secures the $23.5K zone and surges upwards, XRP bulls could be tipped to break above the symmetrical triangle and aim for the $0.4445 target level, offering a potential 7% hike. On the other hand, bears could inflict a bearish breakout targeting the $0.3769 level. However, the drop could be checked by the 100-EMA (exponential moving average) line. So far, two false bearish breakouts have retested the 100-EMA (blue line). A similar trend could see another false breakout retest the line before dropping down to the bearish target.
As per Santiment data, XRP daily active addresses spiked recently but recorded a drop by press time. This indicates that the number of addresses exchanging XRP is lower than before and short-term holders have seen profits. Therefore, investors and traders should track Bitcoin’s price action, especially on key price levels of $23.5K and $22K. If Bitcoin is able to secure the $23.5K level, then XRP bulls could be tipped to break above the symmetrical triangle and target the $0.4445 level. On the other hand, if Bitcoin drops to the $22K support zone, then XRP bears could take control and target the $0.3769 level.