Great compression in XRP anticipates explosive movement

Ripple's cryptocurrency continues to consolidate a bullish pennant pattern.

If this movement continues its trend, XRP would shoot up.

The rise of bitcoin favors the increase of cryptocurrencies.

XRP continues to consolidate a bullish pennant, a figure that reflects optimism among its investors.

In trading, a pennant is a technical analysis indicator characterized by a period of consolidation in the market. It forms when the prices of a digital asset stabilize after a bullish movement.

The pattern is characterized by a strong initial movement, known as the flagpole, followed by a compression phase, in which the highs and lows of the price progressively narrow until the pennant is formed. This compression usually precedes an explosive movement in the same direction as the previous trend, that is, upward.

As reported by CriptoNoticias11, the price of the cryptocurrency issued by Ripple Labs has seen significant growth after Donald Trump's victory in the United States elections, reaching a high of $2.90, price levels not seen since early 2018.

Since then, the price of XRP has registered a downward correction and is now hovering around the $2.40 zone. As seen in the following TradingView chart, during that period, the pennant was formed in the price of XRP.