Can XRP price reclaim $1.50 mark as it edges towards a bullish triangle breakout?

XRP price has been trading within the consolidation zone of $1.20 to $1.40 for nearly 4 weeks as demand for the token faltered amid war tensions.

According to data from crypto.news, XRP (XRP) price rose to a two-week high of $1.39 on Tuesday before stabilizing near $1.36 at the time of writing. The token rebounded amid a broader crypto market rally as reports signalled a potential de-escalation in the U.S.-Iran war, as the latter has signaled its readiness to negotiate a new deal to end the conflict and stabilize regional trade.

Previously, investors’ concerns surrounding the Middle East war deteriorated investor demand for risk assets, including XRP, which had fallen nearly 25% since the war began. 

Demand for the token across leveraged markets has also cooled significantly. Data from CoinGlass shows that the total open interest for XRP futures stood at $2.48 billion at press time, significantly lower than over $9 billion seen in early October.

Such a sharp decline in open interest suggests that speculative excess has been washed out, potentially leaving a cleaner path for a recovery.

Despite this subdued activity, a separate bullish signal comes from looking at the XRP daily chart. Notably, XRP price action has been forming a symmetrical triangle pattern formed of two converging trendlines.

A breakout from the upper side of the pattern could signal a strong resumption of the uptrend, while a break below the lower boundary would likely indicate further weakness. 

At press time, XRP price is attempting a bullish breakout from the pattern. Once confirmed, this could trigger a 30% rally as volatility expands from the current apex.

Technical indicators seem to support a bullish outlook in the short term. Notably, the MACD lines have formed a bullish crossover, a sign that buying momentum is starting to outweigh selling pressure.

Additionally, the daily RSI has formed a bullish divergence with XRP price. This means the underlying strength is building even as the price remains relatively flat, often a precursor to a major move up. 

As such, XRP price appears positioned for a potential rebound to the $1.50 psychological resistance next. A decisive move over this level would mark the next leg up toward the $1.80 range.

However, if XRP price loses the $1.20 support, it could slide back to $1.00 as the bearish trend resumes.