XRP Is on the Edge: Will Support Hold or Break?

XRP has been on a downward trend continuously since the beginning of the past week. A steady stream of bearish candles on the daily timeframe has pulled the price lower each day, ultimately directing the price toward a crucial support level at the time of writing. As of now, XRP is approaching the lower boundary of a symmetrical triangle, which could determine whether this bearish phase will turn into a deeper decline or the beginning of a recovery for this cryptocurrency. Symmetrical Triangle Support in Focus The symmetrical triangle on the daily chart of XRP is not a new pattern, but the way its price is currently interacting with the lower trend line is setting the stage for what could be a significant move. This interesting phenomenon has been noted by a cryptocurrency analyst on the TradingView platform, who highlighted this technical zone as a critical decision point for XRP. As shown in the chart below, a symmetrical triangle has gradually formed since January, with prices oscillating between a series of lower highs and higher lows. This leads to a tightening range suggesting an impending breakout or breakdown. The base support line of the model has been tested three separate times over the past few months, each time resulting in a bounce. However, the persistence of these retests also means that the current retest could easily be broken.

Where Can XRP Go From Here? If XRP can maintain this support level and attract buying interest, then a rebound may occur. A successful rebound from this trend line could trigger a move towards the upper boundary of the triangle, serving as a resistance level.

Such a price increase not only maintains the triangle pattern but can also bring about a bullish sentiment after four weeks of selling pressure. However, the strength of any recovery may depend on the accompanying trading volume. A recovery without strong trading volume could lead to a false breakout. However, the opposite scenario is also possible. If XRP closes a daily candle below this support level, it will confirm the breakout from the triangle structure, opening the door for further downside. As the analyst noted, "losing support could lead to further bearish pressure." The incident not only invalidates the consolidation structure but can also trigger stop-loss orders below the support level. Due to the lack of strong support immediately below the current range, XRP may face a sharp decline to $2 if the support level does not hold. At the time of writing, XRP is trading at $2.18, up 3.8% in the past 24 hours. Interestingly, the price dipped slightly below the lower boundary of the triangle earlier in the day. However, this move quickly faced buying pressure, pushing the price back into the range of the triangle. This small but significant action indicates that the buyers are still active at this level.