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.