The XRP price has broken an ambiguous pattern that favors the bulls but spends moving sideways. This lack of volatility causes the remittance token to remain silent. However, a resurgence in investor interest and capital inflows could catalyze an exponential movement.
XRP Price Awaits Volatility
XRP price action since December 21, 2021 drove three lower lows and two higher lows. Connecting these distinctive swing points using trendlines results in a symmetrical triangle formation.
This technical pattern shows no direction bias until the asset comes out and predicts a 46% increase to $1.25. This target is obtained by adding the distance between the first swing high and low to the breakout point at $0.84
On March 23, Ripple broke the upper trendline, signaling a bullish breakout. Since then, the altcoin has been moving sideways without any hint of volatility. The theoretical forecasting method shows that the XRP price is likely to revisit the $1.20 mark.
However, for this move to take place, bulls must remain above the upper trendline of the said pattern and cut through the $1 psychological level.
Dipping this critical hurdle into a support level clears the way for further gains. In some cases, the uptrend could reach $1.61 if buying pressure continues to build. However, this move would represent a 95% gain from the current position at $0.82.
While the bullish thesis described from a technical standpoint is plausible, the on-chain delivery distribution metric adds even more credibility to it. This index tracks the XRP wallets that are segregated based on the number of tokens it contains.
This on-chain index shows that whales with over 10,000,000 XRP tokens have accumulated since December 25. The number of wallets that fall into this category has increased from 311 to 341 in the past three months.
In total, 30 new whales with more than 10 million XRP tokens have joined the Ripple network. This index serves as a proxy for the intentions of these investors and the rising expectations of the XRP price. Therefore, market participants can expect Ripple price to see an explosive rally in the coming weeks.
While both technical and on-chain stats paint an optimistic outlook for XRP price, the high correlation of the remittance token with the major crypto could be the reason for its demise. Regardless of the bullish breakout, a fatal crash in Bitcoin price will translate into XRP price and its holders.
If XRP price makes a decisive close below $0.69, it will create a lower low and end the bullish pennant formation.
This post Why XRP is well positioned for an explosive 45% rally to $1.25
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