Despite current uncertainties, XRP shows signs of potential growth due to the formation of a symmetrical triangle. Analyst Steph Is Crypto provides insights into the market.
Current State Analysis of XRP
XRP has reached a critical point on the three-day chart, forming a symmetrical triangle that has held since mid-January. This pattern, defined by downward-sloping resistance and upward-sloping support, is now compressing toward an apex.
Crypto analyst Steph Is Crypto noted that the current activity may soon lead to significant price changes.
Target Levels and Risk Management
Currently, XRP is trading around $2.27 with volume notably low. Historically, subdued volume often precedes large moves. Therefore, Steph emphasized that confirming a breakout will depend on a daily close above $2.33. If confirmed, he sees the $5 level as the first major target, estimating a potential gain of 120%. However, he cautioned that $5 could act as massive resistance.
The analyst also stressed the importance of risk management, stating, "Keep leverage low to avoid liquidation."
Historic Parallels and Additional Indicators
Multiple charts in the video compare XRP's 2025 price structure to the 2017 rally. Both the 4-day and monthly time frames showed XRP exhibiting a long consolidation period of 210 days before its previous breakout. The current consolidation aligns closely with that timeframe, adding weight to the argument that a new rally could be imminent.
Additionally, liquidation data suggests significant liquidity exists above $2.35, primarily from short positions. This increases the likelihood of a short squeeze, potentially driving prices higher.
The current market dynamics for XRP show potential growth opportunities based on various technical indicators and historical trends. Attention to risk management and monitoring market movements will assist traders in making informed decisions.