Analyst Sets $4.40 XRP Target As 3rd-Straight Bull Pennant Forms

by

As an analyst with over two decades of experience in the financial markets, I find the bullish outlook for XRP intriguing, especially given its third consecutive bull pennant pattern. Technical analysis is often a reliable predictor of market movements, and if history repeats itself, we may witness another bullish breakout.

A specialist has outlined a potential future value of XRP at around $4.40, should it follow a specific chart pattern known as a ‘bull pennant’ that has emerged over a 4-hour timeframe.

XRP Has Just Shown Its Third Straight Bull Pennant Pattern

In his latest article on X, analyst Ali Martinez delves into the bullish pennant formations that have emerged for XRP in recent times. The term “bull pennant” signifies a technical analysis pattern that arises subsequent to an asset’s consolidation within a triangle following a significant upward trend.

The design consists of two components: a vertical element (pole) and a flag-like element (pennant). The pole signifies the initial upward surge in the asset’s price, which mirrors the setup typically seen before the calming period known as consolidation in a “bull flag” pattern.

Where a bull pennant diverges from a bull flag is in terms of how the consolidation of the asset occurs. In a flag, the price moves between two parallel lines, while in a pennant, it’s between two converging trendlines.

It’s possible that the top line on the pennant will act as a barrier for further increase in price, suggesting potential peaks might happen there. Conversely, the bottom line could provide a floor for the price.

Breaking beyond either of these levels could indicate a continued movement in that direction. Moving above the pennant is generally considered bullish, while dropping below it might signal a bearish trend.

Just as a ‘bull’ pennant emerges during an uptrend, a ‘bear’ pennant can appear when an asset’s price is declining. The bear pennant pattern operates in much the same way as the bull pennant, with its pole representing a downward trend rather than an upward one.

Currently, I’d like to bring your attention to a chart presented by the analyst which illustrates that XRP is moving within a bull pennant pattern at this moment.

Yesterday, it seems XRP made an attempt to break through the upper boundary of its pennant formation, but the asset didn’t sustain this level and instead started declining. It could potentially encounter support at the lower level around $2.25 in the future.

The digital currency is approaching the peak of its trend, suggesting a potential shift in either direction could occur soon. History might provide clues as to which direction the change is more inclined towards.

Looking at the graph, it’s clear that this isn’t the first time the asset has displayed a bull pennant pattern over the past month. In the past, both instances concluded with a bullish breakout in the price. Therefore, there’s a possibility that XRP could experience a similar outcome on this occasion as well.

Ali suggests that the potential price movement could reach $4.40, considering that pennant breakouts often mirror the length of the pole. In simpler terms, he’s encouraging everyone to hope for a drop back to $2.25 (a dip-buying opportunity) so we can aim for a target of $4.40.

XRP Price

Following its drawdown during the past day, XRP has plunged to the $2.39 level.

Read More

2024-12-10 01:16