Ripple XRP price is trading very close to an important resistance area and it could soon break out of it.
XRP price has been trading inside a long-term symmetrical triangle since June 2022. While the support line has existed since this time, the resistance line was introduced in September of the same year.
While the triangle is considered a neutral pattern, the momentum inside it is bullish. This is mainly because of the formation of two bullish hammer candlesticks (green icons) on January 2 and March 12 respectively. The first one made a significant upward move, and the second one may do the same.
If Ripple price breaks down, the next closest resistance will be at $0.46. On the other hand, a break of the support line of the triangle could trigger a decline towards $0.30.
The daily RSI also supports the possibility of a breakout as it has already generated a bullish divergence (green line).
Apart from the price action, it is noteworthy that there is no news regarding the Securities and Exchange Commission (SEC) vs. Ripple Labs case.
Ripple XRP Price Corrective Structure May Catalyze Breakout
Technical analysis from the short-term chart on the six-hours shows that XRP token price is trading in a descending parallel channel. Such channels usually have corrective formations, which means that breakouts are likely to occur from it. It aligns with the readings from the daily time frame. The fact that the price is in the upper part of the channel means that a breakout is more likely.
A breakout from the short-term channel would also mean that the digital asset broke out of the long-term triangle. As a result, it would confirm a downside move towards $0.30. If the ongoing rise continues, a breakout could happen in the next 24 hours.
To conclude, the most likely XRP price prediction is a breakout from the longer term triangle and an increase to $0.46. On the other hand, a break below the support line of the triangle could lead to further losses towards $0.30.
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