Over the past 7 days, XRP has undergone noticeable adjustments in line with the overall market situation. However, today, the XRP price chart has shown something that will delight altcoin holders.
The pattern currently observed has previously allowed the token's price to break through $2.90. Will a similar event happen again?
XRP, Potential to Repeat Historical Trend
From September 29 to November 6, XRP's price moved within a descending triangle. This descending chart pattern is characterized by a descending upper trend line and a flat lower horizontal trend line.
When the price falls below the horizontal line, the downtrend usually continues. Conversely, breaking the upper trend line often triggers a significant upswing. Around November 7, XRP broke out of this pattern, leading to a remarkable 350% price surge.
The daily chart shows the token is forming another descending triangle. If history repeats itself, the altcoin's value could experience another substantial rise.
Another indicator supporting this bias is the Money Flow Index (MFI). MFI analyzes the price and volume of cryptocurrencies to measure buying and selling pressure.
This indicator fluctuates between 0 and 100. Generally, when MFI exceeds 80, it indicates the asset is overbought and may be time to sell. Conversely, when it's below 20, it suggests the asset is oversold and may be a buying opportunity.
At the time of writing, the MFI has risen from 42.05 to 61.64, indicating significant buying pressure around XRP. If this continues, the altcoin could see a substantial rise above $2.24.
XRP Price Prediction: Successful Consolidation Could Lead to Significant Upside
Looking at the XRP price trend, the cryptocurrency has been consolidating between $2.20 and $2.72 since December 3, suggesting buyers and sellers are undecided.
However, with the MFI rising, the short-term trend could shift to an upward direction. Simultaneously, XRP is facing resistance at $2.90. To overcome this obstacle, stronger buying pressure than the current level is needed on the XRP price chart.
In that case, the altcoin's value could rise by 43.53% to reach $3.20. However, if it fails to break the $2.90 resistance, this prediction would be invalidated, and XRP's price could drop to $1.40.
