XRP’s price has taken a hit in the last 24 hours as it fell by 4% to $3.05. Its chart is currently forming a symmetrical triangle, which is a technical pattern that often leads to major price movement. Right now, traders are patiently anticipating a breakout in either direction of the trend.
Decline or rise of a token price is often exhibited by a symmetrical triangle pattern. It is formed by the connection of trendlines that outline the lower highs and higher lows. The pattern is neutral because it does not actually indicate any bullish or sentiment. It’s just the market consolidating sideways.
If the price breaks the lower trendline, it may cause it to drop sharply. Analysts believe that the price can drop to $2.50, which is approximately 18% less than its current price.
But if XRP manages to push itself upward and succeed in breaking the upper line of the triangle, the price can hit $3.75. This upward target is calculated by adding the triangle’s maximum height to the breakout point of $3.20.
Meanwhile, XRP’s market seems to favor bearish sentiment, particularly due to the diminished number of active XRP addresses that has been recently recorded. The number of active XRP wallets has fallen from a three-year high of 108,771 on December 2, 2024, to just 40,292 by January 28, 2025.
This drop of over 39% in just 10 days coincides with an approximate 10% price drop during the same period. With so many active XRP addresses, it appears that many holders actively sold their XRP for profit after the price achieved a high peak in 7 years of around $3.40.
While the prospects do look grim, XRP has recovery potential. It is actually within the bull flag formation, which suggests that the negative sentiment can reverse if the strong support zones hold.
XRP formed the bull flag as its price surged from $2.5 to $3.40 between January 10 and January 16. The current price of XRP puts it near the top of the flag at 3.30.
If XRP breaks above this level, the price could rally and reach $4.60 which means a 52% increase from current price.
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