XRP has faced some challenges lately, losing over 9 percent in value this past week. Still, a promising bullish pennant pattern suggests that a potential reversal might be on the horizon. For five days, the price has been mostly stuck in the range of $2.43 to $2.23, but it’s held firm above the $2.20 support level. Despite Bitcoin’s unfortunate dip below $95k, which has dampened market enthusiasm, XRP remains resilient.
This recent loss of 9.8% reflects a weaker momentum, but there are signs indicating a shift could be coming. The formation of the bullish pennant pattern hints at a bright spot, potentially leading to an impressive 103% price upside. Moreover, XRP’s fundamentals are holding steady, especially with upcoming developments at the Securities and Exchange Commission (SEC) and a likely approval for its spot ETF applications by 2025, setting a sturdy foundation for future growth.
When we look at the price momentum, it is evident that XRP is currently trading below crucial momentum indicators, reinforcing a bearish sentiment. The 9-MA has dipped below the 21-MA on the daily chart, and the price remains under both of these indicators. Thankfully, the Relative Strength Index (RSI) sits at 54, which suggests that a turn in favor of upward momentum could be imminent.
Investor sentiment appears to be improving, as indicated by XRP’s open interest data. According to recent data from Coinanalyze, the value of perpetual contracts has increased by 3.34% over the last 24 hours, now totaling $2 billion. Futures contracts exhibited even more growth, soaring by 22.2% in the same period. If this trend continues, we may see significant price movements in XRP’s future.
The bullish pennant formed on the four-hour chart is a clear sign of potential upward breakout. If XRP’s price can retest the $2.50 level, this could confirm the breakout and highlight the pennant pattern’s significance. By using the pennant’s pole as a gauge, the projected price could surge to $4.580. This projection represents a 103% upside from the current levels and could pave the way for XRP to achieve new record highs.
In summary, while XRP has faced tough conditions recently, the emerging bullish signals and supportive fundamentals could position it for substantial gains ahead. The investment community remains optimistic, and as the market evolves, XRP might just surprise us all.
