Technical analysis shows that Ripple (XRP) price could be gearing up for another rally. This is based on a post made by ZAYK Charts on X. XRP price action is showing a pattern that the analysis could not overlook; a breakout of the key zone could trigger a continuous upward move.
ZAYK identified a bullish pennant formation on XRP’s 8-hour timeframe chart. This pattern, which typically signals a continuation of an upward trend, has been developing steadily over recent trading sessions. “XRP is still moving inside the bullish pennant,” notes ZAYK Charts in their latest analysis, suggesting that patience might soon be rewarded.
The current price action shows XRP price consolidating within converging trendlines, creating what technical analysts call a pennant formation. This pattern came up following a strong upward movement, which forms the “flagpole” of the pattern.
What makes this particularly interesting is how the price has been maintaining progressively higher support levels while testing the upper resistance boundary.
The Projected XRP Price Target
Following a successful breakout from this pattern, ZAYK Charts has set their sights on a target of $3.50. While this might seem optimistic, it’s worth noting that this projection follows established technical analysis principles, measuring from the pattern’s formation.
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The key to this setup, as ZAYK Charts emphasizes, will be the eventual breakout from the pennant formation. The 8-hour timeframe suggests this move could unfold over several days, giving traders ample time to position themselves. However, it’s worth noting that volume will play a crucial role in validating any breakout.
The formation of this bullish pennant on XRP’s chart comes at an interesting time for the cryptocurrency market. The pattern’s completion would require sustained buying pressure, something that could be influenced by broader market sentiment and XRP-specific developments.
Trading within these patterns typically requires careful attention to market signals. While ZAYK Charts presents a compelling case for the $3.50 target, the immediate focus should be on the pennant’s upper resistance line, which is the final hurdle before a potential breakout could occur.
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The post Ripple (XRP) Looking Ready for Another Short-Term Rally: One Resistance to Go appeared first on CaptainAltcoin.
