NOIDA (CoinChapter.com) — Ripple’s XRP token has underperformed against its competitors, with the token paring a significant share of its gains over the past 30 days. XRP’s underperformance against its peers is surprising, considering that several analysts made bullish predictions for the token.
Independent analyst Credibull Crypto predicted a bullish rally for the Ripple token, forecasting the XRP price to move above the $0.7 price level.
However, the token continues to underperform, with the XRP price more or less crabbing since March 16. XRP price dropped over 2.5% on March 26 to reach a daily low near $0.626 before recovering slightly.
XRP Price Paints Bearish Pattern
Meanwhile, XRP price has formed a bearish technical pattern called the “Symmetrical Triangle.”
A series of lower highs and higher lows converge to a point as the pattern develops over time, giving the pattern its triangular appearance.
Traders interpret the completion of a symmetrical triangle as a signal of a forthcoming breakout. The breakout direction is considered to be a continuation of the trend in place before the triangle formed, although it is not uncommon for breakouts to occur in the opposite direction.
As the Ripple token was on a downtrend before entering the pattern, a bearish breakout is likely, which could exacerbate the token’s underperformance. An increase in volume typically accompanies a breakout. Traders initiate a position after confirming the direction of the breakout.
Hence, the pattern gives XRP price a projected price target near $0.168, a drop of nearly 74%, which means XRP price would continue underperforming against its peers.
However, symmetrical triangles can break out in either direction, which means a break above the pattern’s resistance could result in XRP price going for a theoretical target near $2.19, a price boom of 246% from current levels.
XRP Bulls Working To Keep Token Above EMA Support
XRP price fell as bears pared the token’s gains, forcing the token to drop over 4% to a daily low near $0.626 before recovering slightly. If XRP underperforms continually against its peers, the token could drop to the 20-day EMA (red wave) support near $0.608.
Moreover, breaching the immediate support could result in the Ripple token dropping to the 0.236 FIB support level near $0.567 before recovering.
However, XRP price might end up reacting to the bullish cues from the wider crypto market, resulting in an uptrend that would see the cryptocurrency token target resistance near $0.67.
Breaking and consolidating above the immediate resistance might help the Ripple token rally to the resistance near $0.714 before paring gains.
The relative strength index, or RSI, for XRP remained neutral, scoring 52.82 on the daily charts.
