Recent analyses from market experts suggest that XRP may be on the verge of a significant price increase.
This comes despite ongoing legal challenges and market volatility affecting the cryptocurrency sector. Notably, development backing the bullish sentiment is an unusually prolonged bull pennant pattern.
Prominent crypto analyst Armando Pantoja (@_TallGuyTycoon) has highlighted this formation on XRP’s weekly chart, noting its exceptional duration of approximately seven years, and describing the timeline as “7 years of pressure building up.”
The pattern began forming, following XRP’s all-time high of $3.84 in January 2018. Since then, the asset has been consolidating within a triangle.
The lower boundary of this triangle formation shows a gradual upward trend, which coincidentally aligns with the commencement of the SEC’s lawsuit against Ripple in 2020.
Pantoja emphasizes the rarity of such an extended bull pennant, suggesting it could precede a substantial upward price movement. As the cryptocurrency approaches the apex of this formation, the potential for a breakout increases.
On $XRP I’ve never seen a 7-year bullish pennant like this in all my years of trading.
We could be about to witness one of the biggest breakouts of the year. 7 years of pressure building up.
Charts rarely lie and this setup is too perfect. pic.twitter.com/paPryzEO1e
— Armando Pantoja (@_TallGuyTycoon) September 20, 2024
Over time, XRP’s price movements have become increasingly constrained, a phenomenon often observed before significant price actions. The volume profile associated with this pattern also indicates a cautious approach from traders.
This compression of price movement, combined with the extended duration of the pattern, has led some analysts to anticipate an imminent and potentially explosive price movement.
Notably, other analysts have pointed out that similar 7-year consolidation triangles also suggest a massive surge for XRP if it breaks out.
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Parallel Channel Analysis Supports Bullish Outlook
Another perspective on XRP’s price potential comes from analyst Mikybull Crypto, who has examined a two-month chart of the cryptocurrency and identified a parallel channel formation, depicting the digital asset’s price action within an ascending range.
A key observation in this analysis is the role of the channel’s middle line as a crucial support level. XRP has consistently rebounded from this line, gradually approaching a potential breakout point.
Mikybull Crypto’s analysis suggests that this pattern, coupled with the token’s historical price behavior, and a 4-year consolidation, aligns with conditions that have preceded significant price increases in the past years.
Notably, Mikybull’s analysis was an update to another prediction from late September. The analysis incorporated several technical indicators to support the bullish outlook.
The chart showed tightening Bollinger Bands nearing a historic squeeze, and the William %R oscillator indicating that XRP’s current market position is similar to previous points in its cycle that preceded major rallies.
Based on these, the analyst set a target ranging from $10 to $20, repeating an astonishing 1,804% to 3,708% from its current price of $0.5252.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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