An analyst has detailed how XRP might achieve a $4.40 price target due to the emergence of its third consecutive bull pennant pattern on its 4-hour chart. This technical analysis (TA) pattern follows a sharp price uptrend, leading to a consolidation inside a triangle structure.
The bull pennant consists of a 'pole' from the initial upsurge and a 'pennant'. It diverges from the bull flag in that its consolidation involves converging trendlines, with possible resistance and support at the top and bottom levels.
The analyst notes that XRP recently faced resistance at the pennant's upper level but may find support around $2.25 soon. The cryptocurrency's movement towards the apex suggests a potential breakout either way might occur shortly.
XRP’s previous bull pennants resulted in bullish breakouts, indicating that a similar conclusion could happen again. The analyst highlights a target of $4.40, based on the typical length of a pennant's breakout aligning with the pole's length.
Presently, XRP's value has dropped to $2.39 after recent setbacks, but it keeps moving within the bull pennant pattern, offering possibilities for both support and a future breakout.
