A descending triangle like this would be a bearish continuation pattern, so it would most likely break to the downside.
alexandermay
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@kevinmolid, thank you for your feedback. What if it breaks upside? Could it mean anything or the pattern is invalidated? Thank you
kevinmolid
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@alexandermay, if it breaks upside it will not necessarily rally, so you will just be left with a new (or extended) descending triangle, meaning the pattern will not be invalidated. I dont know If this makes sense to you?
You could trade the breakout upwards, but you will most likely be left in a trade that will stay in the same price range for a long time, or just turn around and break the extended triangle downwards. However you have little risk, since you can have a pretty tight stop loss...
kevinmolid
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@alexandermay, I would not recommend this trade based on this triangle, but if you look at XRP/USD or XRP/BTC on larger timeframes there are some other reasons you would might want to be in XRP :)
@alexandermay, I don't have the time to do a detailed analysis right now, but XRP/BTC did a huge rally after a strong bullish divergence on the daily chart around 2 weeks ago. This rally broke through a major resistance line at around 69000 satoshi, which also happens to be the 200 day moving average. Since then it found support at 69000 satoshi, meaning it is unlikely to fall below this point in the short to mid term, but instead it is likely to continue the rally upwards.
If you look at the history of XRP/BTC you can see that this rally looks quite similar to earlier ones, meaning there is a huge potential upside, resulting in a good risk/reward ratio, even at this point.
On the 4 hour chart, XRP is also trending upwards :)