Cryptocurrencies

XRP Price Bullish Pattern Signals 103% Upside

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Written By: Michael Abadha
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    Summary:
  • XRP price has lost more than 9 percent in the last week, but the formation of a bullish pennant pattern signal a potential reversal.

XRP price has been range-bound for the last five days, spending most of the time between $2.43-2.23. Notably, the coin has been resilient above the $2.20 mark and Bitcoin’s break below $95k has created a sour sentiment in the market. XRP has lost 9.8% of its value in the last week and has a weak upside traction.

Despite this, the coin still has elements of a strong support that could favour a reversal. In addition, it has recently formed a bullish pennant pattern, which could yield a 103% price upside as discussed below. Overall, XRP’s fundamentals look stable, with the impending changes at the Securities and Exchange Commission (SEC) and a likely approval of its spot Exchange Traded Fund (ETF) applications in 2025.

XRP price momentum

Also, the coin trades below its key momentum indicators, affirming the downward-leaning sentiment. The 9-MA has recently crossed below the 21-MA on the daily chart, with the price below both indicators. However, the Relative Strength Index (RSI) is at 54, signaling a potential reversal to the upside.

Meanwhile, XRP’s open interest data signals rising investor confidence in the coin’s performance. According to Coinanalyze data, the value of perpetual contracts rose by 3.34% in the last 24 hours to stand at $2 billion. In addition, futures contracts rose by a higher margin, gaining 22.2% in the same time frame. XRP price could experience substantial growth if the trend continues.

XRP price bullish pennant signals upside

XRP price has formed a bullish pennant on the four-hour chart, signaling a potential breakout to the upside. If the price retests the $2.50 mark, it could validate the breakout and bring the pennant pattern into focus. Using the pennant’s pole as a yardstick, XRP price could potentially rise to $4.580. That infers a 103% upside from the current price and a new record-high price for XRP.

This post was last modified on Dec 24, 2024, 09:01 GMT 09:01

Written By: Michael Abadha

Michael is a self-taught financial markets analyst, who specializes in analysis of equities, forex and crypto markets. He draws his inspiration from the fact that markets provide an interface through which the world interacts in search of a better tomorrow.

Published by
Written By: Michael Abadha