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 recent post on X, analyst Ali Martinez has discussed how XRP has exited above a Bull Pennant. The Bull Pennant refers to a technical analysis (TA) pattern that forms when an asset’s price follows a sharp upward movement with a period of consolidation between two converging trendlines.
Bull Pennants are similar to Bull Flags, with the main distinction being that flags involve parallel channels instead. In both cases, the initial uptrend creates the ‘pole’; the consolidation channel in a Bull Pennant is referred to as the ‘pennant.’
While trading within the pennant, the price encounters resistance at the upper trendline and support at the lower trendline. A breakout beyond either level can signal a significant movement in that direction.
Typically, Bull Pennants are continuation patterns, increasing the likelihood of a bullish breakout. This means that XRP has a higher chance of surging above the established resistance level.
Conversely, investors should also be aware of the Bear Pennant, which operates similarly but indicates a potential bearish breakout following a downward move.
Here is the chart shared by the analyst, illustrating the pattern that XRP’s weekly price had been trading within until recently:
As depicted in the graph, XRP was previously experiencing consolidation within a Bull Pennant, but this month, the asset broke out sharply from the pattern.
Generally, breakouts from Bull Pennants are projected to align with the length of the pole. Following this analysis, the target price for this cryptocurrency has been estimated at $15.
Should such a bullish movement materialize for XRP, it would result in an astonishing increase of 320%. However, it remains to be seen if the Bull Pennant will hold true for the asset.
XRP Price
Recent trends indicate that altcoins are experiencing significant price movements, and XRP is no exception. The cryptocurrency has reached the $3.56 mark following a remarkable rally of almost 22% over the past week.
