Price is contracting rapidly and it also helps that XRP's behavior has been quite structured recently with other formations. It looks like XRP's volume is about to explode within the next few days - that's indisputable.
What isn't indisputable and is up for argument, however, is the direction of price. The symmetrical triangle is a continuation pattern, meaning the price will breakout in the direction of the trend. The problem is that there are global trends and local trends. Clearly, in the current situation XRP is in a global down trend and the price is right in the middle of it. Locally, however, it seems to me that the breakout of the wedge that is ascending gives a bullish sentiment. In addition, from a long-term standpoint, I can't see the price dropping under $0.25 from here.
BULL Outcome:
Therefore, the buy/sell decision must be made on breakout. Only buy if it passes its major resistance and descending resistance line (which is a buy signal by itself) and set a stop loss right under the apex of the triangle. This outcome could bring in a guaranteed 20% profit.
BEAR Outcome:
There is still a strong possibility that this ends up being a bearish triangle given that the global trend is bearish. If it is, there are two possible scenarios. Either it is a bear trap with a bounce off of $0.25, or we test $0.20 for the first time in years.
In the end, I would say this triangle is 60/40 bullish.
What isn't indisputable and is up for argument, however, is the direction of price. The symmetrical triangle is a continuation pattern, meaning the price will breakout in the direction of the trend. The problem is that there are global trends and local trends. Clearly, in the current situation XRP is in a global down trend and the price is right in the middle of it. Locally, however, it seems to me that the breakout of the wedge that is ascending gives a bullish sentiment. In addition, from a long-term standpoint, I can't see the price dropping under $0.25 from here.
BULL Outcome:
Therefore, the buy/sell decision must be made on breakout. Only buy if it passes its major resistance and descending resistance line (which is a buy signal by itself) and set a stop loss right under the apex of the triangle. This outcome could bring in a guaranteed 20% profit.
BEAR Outcome:
There is still a strong possibility that this ends up being a bearish triangle given that the global trend is bearish. If it is, there are two possible scenarios. Either it is a bear trap with a bounce off of $0.25, or we test $0.20 for the first time in years.
In the end, I would say this triangle is 60/40 bullish.