XRP, the digital asset majorly distributed by Ripple, has recently garnered significant attention due to a potential bullish breakout.
Notably, Brett Hill (@Brett_Crypto_X), a well-known figure in the crypto community on X, highlighted this possibility in a recent post, supported by technical analysis.
The chart captioned in the tweet shows XRP’s price movement over the last few years, emphasizing a key bullish pennant pattern that recently formed and might lead to a substantial price surge.
XRP has been in the spotlight of the cryptocurrency market for several reasons. Chief of these is the recent victory over the U.S. Securities and Exchange Commission (SEC) in the infamous XRP lawsuit.
However, Hill added another reason for speculation with the bullish pennant pattern. This pattern is often a precursor to a significant upward price movement, sparking interest among traders and investors.
A bullish pennant is a continuation pattern that typically forms after a significant price movement, followed by a consolidation period. The pattern comprises a small symmetrical triangle that slopes slightly downwards, indicating a period of indecision among investors.
However, this pattern often resolves in the direction of the previous trend, which, in XRP’s case, suggests a continuation of the upward momentum observed earlier in the year.
Analyzing the Technical Indicators
The chart accompanying Hill’s post indicates that XRP was trading at approximately $0.5789, after a minor gain of about 4.72% at the time of his analysis.
The price is seen to be consolidated within the bullish pennant, a positive sign for potential further gains. Hill’s analysis suggests an XRP break out from this pattern could result in a 66% price increase, pushing the value to around $0.96.
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Notably, XRP has not reached this level since 2021. The digital asset came close in July 2023, climbing to $0.93 after the court ruled that XRP is not a security. However, it faced resistance and fell shortly after. Despite multiple attempts since then, XRP has failed to reach the $0.8 level.
This projected price target is based on the previous price movement before the consolidation began. Analysts derive the target price by measuring the height of the preceding rally and applying it to the point of breakout. This pattern has been reliable in past bullish predictions, bolstering confidence in the upcoming surge.
Further fueling the bullish sentiment around XRP is the observation of increased whale activity. According to Hill, whales are accumulating XRP, which typically indicates a belief in an impending price increase. Analysts have set significant bullish targets for XRP, Hill himself expressed confidence in the digital asset, revealing a personal holding of over $100 in XRP.
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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