- XRP could see a price bounce between $15 and $17 if it crosses key resistance levels, driven by a Bullish Pennant chart pattern.
- The yellow support line remains critical for XRP’s bullish trend, with staying above it boosting chances for upward momentum.
- XRP’s price rally is contingent on breaking the $3.40 resistance level; a failure to do so leaves market sentiment uncertain.
XRP may be near a large price move as technical analysis looks to a price bounce between $15 and $17. The signals of bullish trends are derived from the Bullish Pennant formation chart pattern that is still valid. These signals have been pointed by popular crypto analyst named Crypto, who explained further that price movement may advance if resistance levels were to be crossed.
XRP’s Critical Support Line
The term ‘Bullish Pennant’ is linked with the continuation of an upward trend once there is a consolidation phase. XRP has held a support level on its chart, marked as a yellow line mostly. As per the analysis, this level has been a key support level that has ensured the price does not falls to the critical points. That is, if the price will stay above this level, the chances of the upward trend will appear.
For a more conservative price target, the “pole leg” of the pennant pattern should be measured from the lower end which yields $15 as a target price. This target can certainly be considered as a reasonable but steady increase in XRP’s value. However, the pole leg can also be measured from the top of the pennant to give more upside price target. This is shown as having a price target of $17, a move that is more bullish compare to the previous week price target of Shrimpy.
Watch for Breakout Signals
However, there are certain risks and preconditions that apply that must not be overlooked. Erag reported that the rally will only go on after getting past the $3.40 resistance level. As long as the price stays below this level the over all market attitude remains unclear. Traders should not exhale yet since what’s needed is an upside breakout that is well confirmed to sustain the bulls. At the time of writing, XRP is $2.80 and is in an upward trend on the day as it has risen by 2.15%.
Source: TradingView
The situation simplifies when taking the yellow support line into consideration as the other crucial aspect of this analysis. If the price is below this line, it will indicate that the market has shifted and has given a bearish signal to XRP. This level has held as a base so far and any break below it would likely indicate a change in trend. A drop below the yellow line shows that the price will encourage sellers to push the price down even further.
XRP is currently still in a wait and see position. The breakout or breakdown in trading is keenly watched by traders and analysts for their signals. The next couple of days will probably have a decisive nature in terms of the bulls being able to maintain control or the bears taking over the cryptocurrency.
