A pattern is emerging on the XRP chart that previously led to a massive bull rally in 2017.
If XRP mimics its 2017 bull rally, then it could reach an ATH in the coming months.
It will be crucial for the coin to first break above $0.58 before breaking out of the pattern.
Like most cryptocurrencies, XRP bears continued to dominate the market over the last week. However, the coin did show signs of a slight recovery over the past 24 hours. The coin’s price is on the verge of breaking out of a bullish pattern.
XRP is integrating
While XRP investors suffered a certain amount of frustration last week as the token’s price plunged 5%, the coming days may be different. This is the case as a long-term bullish symmetrical triangle has formed on the token’s chart.
Well-known cryptocurrency analyst Amonyx published a tweet revealing the pattern. To be exact, the pattern appeared in 2018 and the price of the coin has been consolidating within it since then.
Interestingly, a similar pattern was seen on the coin’s charts as early as 2015.
During this period, XRP achieved a bull breakout in 2017 and set new all-time highs in the following months. Therefore, if history repeats itself, investors may witness a similar event of XRP setting new highs again in the coming months.
At press time, the coin is testing the support level of the bullish pattern, and a successful test could see the coin start moving towards the resistance level.
At the time of writing, the coin is trading at $0.5304 with a market cap of over $29.8 billion, making it the seventh-largest cryptocurrency.
Assessing the likelihood of an imminent XRP breakout
As historical data suggests a high probability of a bullish breakout, AMBCrypto checked on-chain data for the token. According to our analysis of Santiment data, XRP’s trading volume has fallen along with its price over the past few days.
Additionally, its open interest is also showing a similar downward trend. Generally speaking, a decline in open interest indicates a trend reversal, and in this case, it is a bullish sign.
In fact, investor confidence in XRP also appears to have risen slightly over the past week as the number of total XRP holders increased and reached 5.3 million.
Another bullish indicator is a rising long/short ratio. This means that there are more long positions than short positions in the market.
However, analysis of Hyblock Capital data shows that XRP must first surpass $0.58 to achieve a bullish breakout.
