XRP price is technically all about triangles, Ripple eyes $0.80
|- XRP price had a good run this weekend, coming off the low of $0.627 from Friday.
- The negative turn this morning bounced off a multi-week descending trend line.
- With another triangle formation, Ripple is made or break for the run higher toward $0.784.
XRP price was blessed as well this weekend with the overall positive recovery in cryptocurrencies. The majors like Bitcoin and Ethereum made solid profits, but sentiment shifted on with profit-taking that erased the gains from the past weekend.
XRP price still has a chance to shoot higher
Ripple made a solid recovery this weekend, coming from $0.626 toward $0.707, a 13% move to the upside that got squared during the Asian session on Monday. The top cryptocurrencies could not hold their gains and dragged the rest of the market with them to the downside, pairing losses.
That does not mean there is not more upside though. The trend broke lower when XRP price broke the symmetrical triangle to the downside, testing $0.626. Ripple moved higher after a bounce off that level toward $0.708, which looks to fall in line with the high of the candle that caused the break to the downside out of the extensive triangle formation from last week.
In the meantime, it seems like this weekend XRP price entered a new triangle that is squeezing it into a smaller range with higher lows and lower highs. Again a break to the downside looks set, but a test at $0.626 should be a signal for buyers to come back in.
The reason for buyers to step in is the fact that nothing fundamental has changed to the markets. Overall risk-on sentiment in markets globally is still present, and negative news surrounding cryptocurrencies and legislation is falling into the background.
XRP/USD daily chart
The break to the downside in XRP price out of the smaller triangle should not be a red flag for buyers. Just below, Ripple has the $0.626 level that held during the weekend to the downside. Should Ripple break lower, look for the $0.50 marker as an excellent position to buy the dip.
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