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- The XRP price appears to have formed an ascending triangle on the weekly chart.
- If Ripple’s native token manages to flip $ 0.31 as support, it could point to $ 0.5.
After closing the previous five days in positive territory and testing its mid-August high of $ 0.3085, XRP staged a technical correction on November 18. The bearish momentum saw it lose more than 6% in value to a low of $ 0.2832.
$ 0.31 lines up as a key hurdle for XRP
The XRP appears to have formed an ascending triangle on the weekly chart, with the trend line coming in early March when the price hit a low of $ 0.10. On the positive side, the rebound met strong resistance in late July and early August around $ 0.31, which caused Ripple to retreat.
Ascending triangles are usually considered to be continuation patterns, and a decisive break above $ 0.31 could bring in more buyers and provide a boost to XRP. Using the widest part of the triangle, the upside target could be set at $ 0.5, which coincides with a 60% gain.
1 week XRP / USD chart
Meanwhile, the recent spike in network activity reinforces the expectation of a breakout. The chart below shows that investors appear to re-enter the market and believe in the upside potential of XRP. In the past, increasing network growth has led to rising prices.
Now, similar price action could take place if this cryptocurrency manages to turn the resistance barrier at $ 0.31 into support.
Ripple Network Growth Chart
It is worth mentioning that the most recent rejection at $ 0.31 could force the XRP price to extend its slide to $ 0.27, where the ascending trend line is. If this support holds, the ascending triangle will remain intact and the bullish outlook will also prevail. However, a weekly close below this support level could be seen as a daunting development and attract more sellers.
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