The XRP chart against Bitcoin suggests a potential major squeeze is on the horizon, and crypto analyst MichaelXBT has pointed this out in his recent analysis.
Notably, in an accompanying chart, the market watcher drew out several significant patterns such as converging trend lines and wedge formations that XRP has formed against Bitcoin on the 4h timeframe. These patterns signal that XRP is near a moment of volatility.
MichaelXBT identified a series of descending triangles combined with symmetrical triangles that have formed since mid-July. The larger symmetrical triangle began when XRP recorded an impressive push against Bitcoin from July 10.
Remarkably, the altcoin spiked 28% from 0.00000752 BTC to a peak of 0.00000962 within three days. Since then, XRP has been slowly recovering its lost grounds against BTC despite a slowdown in the upsurge. This has resulted in the formation of the upward symmetrical triangle.
Notably, the emerging trend lines indicate that XRP has been steadily testing resistance points while maintaining a long-term upward support trend. The analyst points to this as evidence of bullish sentiment brewing beneath the surface.
Meanwhile, the market has remained relatively flat in terms of volume and volatility due to trader apathy amid uncertainty. However, the converging patterns on MichaelXBT’s chart signal the possibility of a big move ahead, with price action compressing into a narrow range.
The analyst believes that these trends suggest that the “squeeze” is about to occur, leading to the possibility of a large price movement that could happen shortly once one of the key levels is broken. However, he failed to provide any price targets.
Possible XRP Targets
Meanwhile, MichaelXBT has been vocal about his bullish stance on XRP in the past few weeks. According to his earlier statements, his primary target for XRP is around $2.
He revealed plans to focus his strategy on maximizing profits from XRP’s expected rise and then rotating the gains into other altcoins for further portfolio diversification.
However, XRP has been stalled at the resistance line for an extended period, which Michael refers to as the “7-year pennant resistance.” This level has historically prevented further upward movement for XRP, but the analyst remains confident that a major breakout is imminent.
XRP is stalling at the 7 year pennant resistance line
Gearing up for the biggest breakout of the year..
When it breaks, the pump will be so fast you will not have time to react
— Crypto Michael (@MichaelXBT) August 24, 2024
He suggested that when this resistance is finally breached, the price surge will be swift and sharp—fast enough that many investors may miss the move if they don’t act quickly.
Recently, Michael noted the importance of the $0.62 level for XRP. He believes this is the critical resistance zone that, when broken, will activate an XRP rally.
Currently, XRP changes hands at $0.5366, having increased 1.4% over the past 24 hours. It also trades for 0.00000944 BTC, a 25% increase from the July 5 low.
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