An analyst has pointed out that XRP has broken out of a Bull Pennant on the weekly chart and may now be setting its sights on this target.
XRP Has Surged Above Bull Pennant Recently
In a new post on X, analyst Ali Martinez has talked about how XRP has exited above a Bull Pennant recently. The Bull Pennant refers to a technical analysis (TA) pattern that forms when an asset’s price succeeds a sharp upwards move with a period of consolidation between two converging trendlines.
Bull Pennants are similar to Bull Flags, with the main difference being that flags involve parallel channels instead. Just like in the case of the Bull Flag, the initial uptrend forms the ‘pole,’ but the consolidation channel here is known as the ‘pennant.’
When the price is trading inside the pennant portion of the pattern, it’s likely to face resistance at the upper level and support at the lower one. An escape out of either of these levels might signal a breakout in that direction.
Bull Pennants are considered to be continuation patterns, so a breakout may be assumed to be more probable in the bullish direction. That is, the asset can be more likely to surge above the resistance line.
Like the Bull Pennant, there is also the Bear Pennant. This TA pattern works much in the same way, except for the fact that the pole is represented by a downwards move and that a bearish breakout is more likely.
Now, here is the chart shared by the analyst that shows the pattern that the weekly price of XRP was trading inside until recently:
As displayed in the above graph, the weekly price of XRP was earlier witnessing consolidation inside a Bull Pennant, but this month, the asset finally found a break as its price exited out of the pattern in a sharp manner.
Usually, Bull Pennant breakouts are considered to be of the same length as the pole. Based on this, the analyst has drawn a potential breakout for the cryptocurrency in the chart. The target that it leads to is $15.
If such a bull run does occur for XRP, then its price would have surged by a whopping 320%. It now remains to be seen whether the Bull Pennant would actually end up holding for the asset.
XRP Price
The altcoins have taken off recently and XRP has been no exception, as its price has reached the $3.56 mark after a rally of almost 22% over the last week.
Credit: Source link
