Ripple Price Prediction: XRP shows convincing setup for a rally towards $0.5
|- XRP price seems to have formed an ascending triangle on the weekly chart.
- If Ripple's native token manages to flip $0.31 as support, it could target $0.5.
After closing the previous five days in positive territory and testing its highest level since mid-August at $0.3085, XRP staged a technical correction on November 18. The bearish momentum saw it lose more than 6% in value, dropping to a low of $0.2832.
$0.31 aligns as a key hurdle for XRP
XRP seems to have formed an ascending triangle on the weekly chart, with the trend line coming from early March when the price hit a low of $0.10. On the upside, the rebound met stiff resistance in late-July and early-August around $0.31, which caused Ripple to retreat.
Ascending triangles are usually considered as continuation patterns and a decisive break beyond $0.31 could bring in more buyers and provide a boost to XRP. Using the widest part of the triangle, the target on the upside could be set at $0.5, which coincides with a 60% gain.
XRP/USD 1-week chart
Meanwhile, the recent spike seen in network activity reinforces the expectation for a breakout. The chart below shows that investors appear to be re-entering the market and believing in XRP's upside potential. In the past, a rising network growth has led to rising prices.
Now, a similar price action could be about to take place if this cryptocurrency manages to turn the $0.31 resistance barrier into support.
Ripple network growth chart
It is worth mentioning that the most recent rejection at $0.31 could force XRP price to extend its slide to $0.27, where the ascending trend line is located. If this support manages to hold, the ascending triangle will remain intact and the bullish outlook will also prevail. However, a weekly close below this support level could be seen as a discouraging development and attract more sellers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.