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XRP price action has drawn attention as analysts have identified a multi-year triangle formation on the price chart, which is believed to be key for the next big move. The price data reveal that the XRP price is trading near a key resistance point while showing positive signs for short-term price momentum.
Technical analyst Ali Martinez wrote on X that XRP is currently trading within a multi-year symmetrical triangle formation on the price chart. The formation has been ongoing for an extended period, indicating a possible breakout for the cryptocurrency price.
The chart shared by the analyst on March 13 identified that the price is currently trading near the upper triangle line, which is located at $3.32. Moreover, the breakout above the line is believed to be a key signal for the price to move towards a long-term target of $48.
The breakout target is identified based on the height of the triangle formation. Furthermore, the price is expected to move to the target price based on the breakout above the line. The chart also identified key support levels for the price at $0.90 and $1.60. The price has been holding well at the identified support levels.
At the time of writing, XRP is trading at $1.39 based on recent price data. The price has been showing positive signs for the short-term price movement. It has risen by 1.32% in the last day and almost 3% in the past week.
The daily chart for XRP has mixed signals; however, the price has shown improvement over the last few sessions. The price is above the 20-day exponential moving average at $1.40; however, it remains below the 50-day EMA at $1.52 and the 200-day EMA at $2.00.
The Relative Strength Index on the daily chart for XRP is at 51. This shows a neutral momentum for the price. Moreover, the MACD indicator is also showing a slight positive movement; however, it has not shown a strong trend. This shows that the market has started a recovery rather than a full bull run.
The key pivot levels for the price are at $1.42; the resistance is at $1.45, whereas the support is at $1.40. Hence, the price needs to remain above the support for the short-term bulls to remain in place.
The lower-timeframe chart for XRP shows strong momentum compared to the daily chart. On the hourly chart for the price, it has shown a strong uptrend by staying above the 20-period, 50-period, and 200-period averages. This is a strong indication that the intraday trend for the price is supporting the bulls; however, the resistance for the price is acting against them.
The Relative Strength Index on the hourly chart for XRP is at a high of 56. This shows a strong demand for the price; however, it also indicates a minor pause in the price movement.
Moreover, the MACD indicator on the hourly chart for the price is showing a slight positive movement; however, the Bollinger Bands are showing a movement closer to the upper band.
For short-term traders, the $1.40-$1.42 region remains key short-term support. If the price can hold here, the next potential hurdle will be at $1.45. Breaking past this level could take the token towards the $1.50-$1.55 region, where the 50-day EMA is located.
The overall sentiment in the market remains cautious despite the bounce. The crypto fear and greed index remains in an extreme fear region. Analysts note that before a strong bullish trend can be established in the XRP market, the token needs to overcome higher resistance levels.
Also Read: Is XRP Price About to Crash? Warning Signs Investors Should Know
