Key Analysis: Descending Triangle Pattern
As seen on the chart, XRP price has formed a very clear Descending Triangle pattern since late 2024. The pattern is characterized by:
Upper Trendline (Dynamic Resistance): A descending trendline connecting the lower highs. This indicates selling pressure every time the price tries to move up.
Lower Line (Horizontal Support): A strong horizontal support zone around the $1.52 - $1.85 level. This area has successfully held the price from falling further several times, indicating significant buying interest at this level.
The Descending Triangle pattern is often considered a bearish continuation pattern. However, if it breaks out to the upside (penetrating the dynamic resistance line), it could be a very strong reversal signal.
Trading Scenario and Plan
Based on the structure of this pattern, I see a long (buy) trading opportunity with a very attractive risk/reward ratio.
Entry Point: I see the $1.83 area as a potential entry point. This level is near the horizontal support zone, offering a relatively low price before a potential upside. Currently (early July 2025), the price is retesting this support area, providing an opportunity for accumulation.
Stop Loss: For risk management, I will place a Stop Loss below the key support zone, which is around $1.52. A daily candle close below this level will invalidate my bullish scenario.
Take Profit: My long-term target is at $5.04. This target is based on the psychological resistance level and the potential price movement after a breakout from the long consolidation pattern.
As seen on the chart, XRP price has formed a very clear Descending Triangle pattern since late 2024. The pattern is characterized by:
Upper Trendline (Dynamic Resistance): A descending trendline connecting the lower highs. This indicates selling pressure every time the price tries to move up.
Lower Line (Horizontal Support): A strong horizontal support zone around the $1.52 - $1.85 level. This area has successfully held the price from falling further several times, indicating significant buying interest at this level.
The Descending Triangle pattern is often considered a bearish continuation pattern. However, if it breaks out to the upside (penetrating the dynamic resistance line), it could be a very strong reversal signal.
Trading Scenario and Plan
Based on the structure of this pattern, I see a long (buy) trading opportunity with a very attractive risk/reward ratio.
Entry Point: I see the $1.83 area as a potential entry point. This level is near the horizontal support zone, offering a relatively low price before a potential upside. Currently (early July 2025), the price is retesting this support area, providing an opportunity for accumulation.
Stop Loss: For risk management, I will place a Stop Loss below the key support zone, which is around $1.52. A daily candle close below this level will invalidate my bullish scenario.
Take Profit: My long-term target is at $5.04. This target is based on the psychological resistance level and the potential price movement after a breakout from the long consolidation pattern.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.