- XRP’s bullish pennants suggest continued upward momentum, with $2.60 as the key resistance for a potential breakout.
- Analyst Ali Martinez forecasts XRP could hit $4.40 if it breaks $2.60, with $2.25 seen as a key support level.
- Rising trading volume and bullish technical indicators point to XRP’s potential growth, despite recent pullbacks and liquidations.
XRP has been in the spotlight in the cryptocurrency market as it is constructing a series of bullish pennants, which might indicate further price increase. At the present time, XRP is trading between $2.22 and $2.60, and a potential break through could be on the cards given the technicals and the bullish mood amongst the market.
The first bull pennant came into view when XRP price rose from $0.80 to $1.20, then consolidated before a rise. The same situation was observed when XRP moved from $1.20 to $1.80 and Consolation was followed by a breakout again.
XRP increased from $1.80 to $2.50, thus ending the third bull pennant in a sequence. These patterns are perceived as bullish signs that mean that prices are most likely to rise in the future.
XRP Breakout Potential
Ali Martinez said that if the rate of XRP rises above $2.60, the next large-scale target may be $4.40. Another level that Martinez highlighted is $2.25 and he believes this level may be the entry for those who are eager to take part in the further growth of the cryptocurrency.
Some of the following technical analysis supports the bullish view as discussed below. Currently, Ripple’s price is trading above the lower Bollinger Band, which is a bullish indication. Even as the digital currency has a slight pullback from the upper Bollinger Band, the midline at $1.93 may act as a support point if the price drops even further.
RSI is another positive signal at 67.33, which is an indicator of the strong bullish pressure. However, the RSI is being very close to the overbought level, and that may lead to a short term consolidation before the prices continue its upward trend. The MACD indicator also confirms the above forecast and the MACD line is still above the signal line which means that the upward momentum is still intact.
Source: TradingView
Rising XRP Trading Volume
The trading volume has been rising gradually, and this can be seen with token whose trading volume has risen by 13.86% as seen at Cloinglass. The volume traded in options has increased by 17.41%, meaning more traders are putting their money in XRP to go up in value.
Moreover, open interest of options contracts has increased to 16.20% which is a good sign in the market. But the open interest in perpetual contracts has reached a mark of 3.89% less which shows that some of the traders are squaring off their position due to recent pullback.
Source: Coinglass
The market outlook has mostly been bullish as can be seen by the Long/Short ratio on exchanges such as Binance and OKX being tilted towards the longs. Ripple has not been having the best few days with some liquidations being made, however, it remains a cryptocurrency that could experience growth in the near future. If the price of token goes beyond $2.60, it may easily hit the $4.40 mark.
