- Ripple price lags key technical breakout targeting a massive upswing to $1.02.
- Santiment’s age consumed metric hints at impending massive price action for XRP.
Ripple price lost momentum after hitting levels above $0.7 on Tuesday. Its uptrend failed to sustain above $0.72, culminating in a minor correction under $0.7. Support seems to have been established at $0.66, allowing bulls to balance the price at $0.68.
Ripple price forms crucial technical pattern with a 50% target
The international money transfer token has maintained a downtrend since its multi-year high of nearly $2. Numerous support levels have come into the picture to ensure that downward action is mitigated, but overhead pressure gives bulls a difficult time.
However, with the formation of a falling wedge pattern on the 12-hour chart, optimism for a massive breakout is coming alive. A falling wedge is a highly bullish pattern in technical analysis. It often functions as a trend reversal, as seen on Ripple’s chart.
Two trend lines create the wedge, linking sequential declining tops and a series of lower lows. The pattern starts with the asset recording high volumes, but as the cone narrows, this volume contracts.
A breakout is anticipated before the trend lines converge and confirmed by Ripple price cracking the upper trendline resistance. Falling wedges give way to a precise breakout target equal to the distance between the widest points of the patterns. Hence, Ripple price may lift 50% higher from the breakout position and explore levels above $1.
XRP/USD 12-hour chart shows a falling wedge pattern
The exact timeframe illustrates a bullish Moving Average Convergence Divergence (MACD) indicator. A bullish signal occurred amid the recovery from last week’s support at $0.52 when the 12-day exponential moving average crosses above the 26-day exponential moving average. The overall bullish outlook will be reinforced by the MACD crossing above the zero line into the positive area.
Ripple price age consumed on-chain metric signal immense price action
According to on-chain data by Santiment, Ripple’s age consumed metric has spiked, implying that a massive price movement is around the corner. The metric follows the movement of previously idle XRP tokens by calculating “the amount of XRP changing addresses daily multiplied by the number of days since they last moved.”
It is worth mentioning that spikes in the age consumed metric point toward a massive amount of these previously idle XRP tokens changing addresses. When this happens, the price tends to move significantly.
Note that age consumed does not indicate the direction Ripple price will move to; however, the technical analysis shows that the uptrend is intact, and XRP may hit levels above $1 in the near term.
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John Isige
