XRP’s price breached its three-month consolidation pattern on 27 March, indicating the start of a massive run-up. Investors can jump on this bandwagon and ride it to crucial levels before booking profits. This outlook makes sense considering the recent bullish narrative that has evolved with BTC.
XRP’s price ready to rumble
XRP’s price has set up three lower lows and two higher lows since 21 December 2021, which when connected using trend lines resulted in the formation of a symmetrical triangle. This pattern forecasts a 46% upswing, obtained by adding the distance between the first swing high and low to the breakout point.
This measurement method also revealed that XRP’s price is likely to revisit the $1.20-barrier. However, for this move to be possible, the bulls need to hold above the upper trendline of the symmetrical triangle. Additionally, the altcoin needs to slice through the $1 psychological level and flip it into a support level.
Such a development will allow XRP’s price to retest $1.20 aka the symmetrical triangle target. Beyond this, if the buying pressure continues to pour in, the remittance token will make a run at the $1.61 hurdle, bringing the total run-up to 97%.
While most altcoins have registered massive uptrends, XRP’s price seems to be slowly, but steadily, hiking too. If the near 100% outlook does not seem appealing, the on-chain volume suggests that it is more than likely.
How important is volume?
The on-chain volume for XRP’s price was 1.69 billion, at press time – A number relatively low and below the 200-day moving average (MA) at 2.48 billion. Therefore, a massive uptick in on-chain volume could be the key to triggering a massive uptrend for XRP’s price.
XRP rallied by roughly 150% the last time the on-chain volume exploded from below the 200-day MA to above it. Therefore, investors need to pay close attention to the on-chain volume and any upticks that originate.
Source: Santiment
Regardless of the optimistic outlook for XRP, it is dependent on Bitcoin sustaining its recent run-up. Although the crypto has remained less volatile and is not as affected by BTC’s retracement, a massive flash crash could turn the directional bias sour for the altcoin’s holders.
If XRP’s price produces a decisive close below $0.69, it will create a lower low and end the bullish pennant formation.
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