XRP Breaks Below Triangle Support Trendline: Here’s Where the Next Key Support Lies

XRP recently broke below a pivotal triangle support trendline amid the latest pullback, bringing lower support levels into play.

Cryptorphic, a pseudonymous yet prominent market analyst, first called attention to this development, pointing out that the breakdown poses a problem to bulls. According to him, from here, XRP’s next key support lies around the $1.21 mark, aligning with an important horizontal support trendline.

Key Points

• XRP has broken below the lower support trendline of a pivotal symmetrical triangle after months of persistent squeeze.
• The triangle formed as XRP recovered from the crash to $1.1 in February and lasted for over three months.
• The next step for XRP is to retest the lower trendline, which has now flipped to resistance.
• If the asset fails to breach the resistance and slip back into the triangle, the next key support level lies around $1.21.

XRP Breaks Below Triangle Support

Cryptorphic confirmed this breakdown in his latest XRP price analysis, adding that the development is not a good sign for bullish investors. According to him, XRP recently made a breakout attempt during the wider market upsurge, but this was not enough to breach the resistance at the upper trendline.

For context, XRP and the rest of the crypto market slipped into a rebound campaign at the end of April. This recovery push resulted in XRP recording three successive higher highs, particularly $1.45 on May 6, $1.50 on May 10, and $1.54 on May 14.

Notably, hitting the $1.54 high allowed XRP to retest the upper trendline of the symmetrical triangle, as it eyed a possible breakout above the trendline. However, the resistance at this area proved stubborn, especially as the bullish momentum in the crypto market lost steam.

As a result, XRP experienced a pullback with the rest of the market, collapsing from the $1.54 high. The crypto asset saw a 3.43% intraday drop on May 15, its largest single-day crash in over a month, and sustained the downtrend until it hit the late-April lows of around $1.34 yesterday. This resulted in the breakdown below the lower support trendline.

Origin of the Symmetrical Triangle

For context, the symmetrical triangle started forming after XRP collapsed from its January highs to the $1.1 floor price in early February and then recovered immediately. From here, the price witnessed a series of lower highs and lower lows, gradually compressing into lower swings.

Cryptorphic highlighted the symmetrical triangle in an update on May 11, pointing out this compression, as the XRP price pushed toward the apex of the structure. At the time, he noted that XRP had not recorded any confirmed breakout or breakdown, but that it was running out of space.

According to him, the compression typically leads to a massive move in either direction when the market makes a decision. However, he stressed that the structure looked weak and sellers could take control of the scene if XRP suffers a breakdown, eyeing lower price levels.

What Next for XRP?

This breakdown has now occurred, but a retest of the lower trendline as resistance is necessary to confirm the dominance of selling pressure. If XRP breaches the trendline and slips back into the triangle, it could negate the bearish trend. However, if it fails to breach the trendline, this may lead to steeper declines.

In this case, Cryptorphic stressed that the next key support would sit at the $1.21 level, representing an additional 12% decline from current levels. At press time, XRP has recovered considerably from the $1.34 low, changing hands around $1.38 as it seeks to breach the lower trendline.