XRP compressed between trend lines: the symmetrical triangle is approaching the breakout point

In the past two months, XRP has attracted traders’ attention with an intriguing chart pattern: a narrow price range bounded by two converging trendlines. After the decline from the $3 zone in early October, Ripple Labs’ cross-border payment cryptocurrency now finds itself trapped in what technical analysts recognize as a classic symmetrical triangle.

The Triangle Structure and Key Lines

The descending resistance line, drawn from early October, has consistently hindered recovery attempts, pushing the price back down after each breakout attempt. Meanwhile, an ascending support line, developed since late October, has systematically supported lower levels, creating a series of higher lows despite the highs continuing to contract. This ascending trendline, typical of mature symmetrical triangles, is gradually compressing the available space for movement.

At the current price of $2.04, XRP is positioned near the lower support line, which has shown resilience through numerous tests over the past six weeks. The buildup of pressure at the triangle’s apex suggests that a directional decision is imminent.

The Bullish Scenario and Target Levels

For bullish traders, the critical test is whether this ascending support line will once again contain the declines. If the price bounces effectively from these levels and breaks through the descending resistance (zone between $2.10 and $2.20), the scenario would reverse dramatically. Projecting the height of the triangular formation, the price could progressively move toward the $2.60–$2.80 area. However, this development requires a considerable amount of patience in the coming days.

The Bearish Scenario and the Risk of Lower Breakout

On the other hand, if XRP closes below the ascending support line, a downward breakout of the triangle becomes likely. Such a penetration could amplify selling pressures, pushing the price toward the $1.60–$1.50 zone or even lower. Given the maturity of the pattern, a failure at these levels would hardly lead to a quick rebound in the short term.

Volume Analysis and Timing of the Breakout

The volume profile offers an interesting clue: as the triangle approaches its conclusion, volumes have shown a progressive contraction. Although this is expected in triangular formations, it carries an important message: regardless of the breakout direction, the impulse could be particularly decisive and violent.

The geometric apex of the pattern should be reached in approximately the next one or two weeks, indicating that the decisive move is imminent.

Operational Guidelines for Risk Management

For bullish traders, the strategy is to wait for a bounce off support levels, with an obligatory exit if the daily close drops below $1.80.

For bears, confirmation of a downward breakout signals an entry point: open short positions only after the price closes a session below $1.75.

Concluding Remarks

XRP is teaching traders a fundamental lesson: when trendlines converge in this manner, the market is effectively accumulating energy for a significant move. Whether this energy releases upward or downward will depend on which force prevails at the moment of the breakout. Carefully monitoring these critical levels remains essential, as one of the trendlines is about to be broken.