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After months of a tightening pattern finally breaking to the upside, there is now talk of a climb that could stretch the XRP price all the way to $11.
On the weekly time frame, the third biggest cryptocurrency right now has been working within a triangle pattern since late last year, with each swing narrowing the range until July's breakout pushed the price beyond the upper boundary.
That move took XRP up to $3.38 before easing back to the current $3.22, which seems more like a pause than a reversal.
The structure is fairly simple: a long compression phase, a breakout and now the early stages of post-breakout consolidation.
More numbers
On the Fibonacci map of the last major rally, the $3.40 area is the first big hurdle, where the 1.0 extension comes in. Clearing that with confidence could lead to $5.75 before even thinking about the much-discussed $11.20 target at the 1.618 extension.
When it comes to risk, the $2.25 zone is still the main thing to watch out for. That's the former resistance that is now support, and the 0.786 Fibonacci retracement level. If support is lost, it will take a lot of wind out of the bullish scenario and invite a retest of $1.63 or even $1.29.
Right now, the market is watching to see if XRP can hold its ground just above the breakout and then make a strong push through $3.40. If that happens with volume, the conversation about $11 stops being a wild prediction and starts becoming a more likely possibility.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team