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Market analysts identify an unprecedented bull pennant on the XRP chart, arguing that its presence could result in major price surges.
The analyses come as XRP price struggles at important support levels amid the recent market correction. As the broader market battles to retain the bullish momentum, XRP’s woes deepened with the appeal notice filed by the U.S. SEC in the Ripple lawsuit.
XRP Forms 7-Year Bullish Pennant
Despite XRP’s unique struggles, market analyst Armando Pantoja recently shared a 1-week chart for XRP, calling attention to a massive unprecedented 7-year bullish pennant formation.
Data from the chart shows that XRP has consolidated within this triangle since its $3.31 peak in early 2018. The weekly chart shows a gradual upward trend since 2020 when the SEC’s lawsuit began, forming the base of the pennant, while the upper line slants downward.
The volume profile indicates that traders have remained cautious, with XRP’s price movement becoming tighter over time. Pantoja pointed out the rarity of such a prolonged bullish pennant, and he believes this could be a precursor to a massive upward price movement.
As XRP moves close to the tip of this pennant, this suggests that a breakout might happen soon, with the price coiling in a manner that usually precedes explosive moves.
XRP Targets $10-$20
Another analyst, Mikybull, discussed XRP’s price potential, focusing on a longer-term 2-month XRP chart. His chart identifies a parallel channel formation, showing XRP’s price action as it moves within an ascending range.
The middle line of the channel has served as key support, and XRP has been bouncing back from it, inching closer to a potential breakout. Mikybull pointed to the repeated historical highs, suggesting that XRP is aligning with a pattern that could send it skyrocketing.
The Bollinger Bands on the chart show that XRP is nearing the edge of a squeeze, where volatility compresses, setting the stage for a sharp move either way. However, Mikybull is confident in a bullish outcome, noting that the market’s pessimism about XRP’s prospects could actually fuel its rise to $10-$20.
The analyst also leveraged the William %R, which suggests that XRP is at a point in its cycle similar to where it was before its previous major rallies. According to Mikybull, the amount of bearish sentiment surrounding XRP could set the stage for one of the most remarkable price surges in this market cycle.
Meanwhile, at press time, XRP trades for $0.5402, having recorded a 1.89% increase over the past 24 hours. This rebound came on the back of the collapse to the $0.52 region following the SEC’s appeal notice. Bulls retook moderate control after the price stabilized at this level.