XRP has been observing lower highs over the past three days, but a market analyst believes it’s merely filling an ascending triangle formation.
This bearish turn of events began on Saturday, Feb. 15, after XRP claimed a two-week peak of $2.83 on the back of positive developments around XRP ETFs. Due to the lack of support from the broader market, the resistance at this top triggered a pullback that XRP has continued to face.
Over the past three days, XRP has dropped 7.5%, giving up the $2.7 and $2.6 psychological marks within this period. Market analyst EGRAG Crypto confirmed in his latest analysis that XRP has since witnessed up to four losses over the past six 12-hour candlesticks, confirming the bearish pressure.
XRP Merely Filling up a Symmetrical Triangle
However, despite the reality of things, the market commentator insists that XRP is not particularly “crashing,” as some believe. According to him, the ongoing correction is all “part of the game,” urging investors to stay calm despite the bearish price action.
EGRAG insists that the pullback is necessary for XRP to fill a symmetrical triangle that started forming at the beginning of February after XRP witnessed a three-day collapse. Within these three days, XRP dropped 18.53%. The asset suffered subsequent drops but found support around the $2.3 price level.
The consolidation that followed led to the formation of the current symmetrical triangle. However, XRP broke out prematurely when it spiked to $2.83 on Feb. 15. Now, the bears have triggered a correction that has brought XRP back into the triangle as the asset looks to fill it to the apex.
While assets can witness early breakouts from symmetrical triangles without actually filling them, these breakouts are usually less reliable. A more reliable breakout occurs after the asset has filled the triangle to an extent, showing that bulls took control after a period of consolidation.
XRP Now Needs to Consolidate Within the Triangle
XRP has now slipped back into the triangle and is looking to consolidate within it for a few more days. This is the typical order of things. EGRAG called the initial uptick to $2.83 a fake-out and pointed out that XRP is now retesting the edge of the formation. However, the asset needs to ensure it does not slip below the lower trendline.
Nonetheless, if it actually drops below the trendline, EGRAG’s chart points to a sturdy support around an ascending channel at the $2.47 level. Meanwhile, on the upside, if XRP fills the triangle and breaks out again, its first major resistance lies at the $2.9 mark. This represented XRP’s initial roadblock on Dec. 3, 2024.
A decisive push above this resistance would take XRP above $3 again, with the next roadblock at $3.224 before $3.4. Currently, XRP changes hands at $2.53, which was already down 1.10% this morning. The bulls must retain the $2.5 level to keep XRP within the symmetrical triangle.
