Analyst Sets $4.40 XRP Target As 3rd-Straight Bull Pennant Forms
One analyst explained how XRP eventually reached a $4.40 price target based on a bull flag pattern forming in the 4-hour price.
XRP Just Displayed Its Third Consecutive Bull Pennant Pattern
in a new postal Over at X, analyst Ali Martinez discusses the recent bull pennant pattern that formed for XRP. this”bull pennant” refers to the pattern that occurs after an asset consolidates within a triangle after a sharp upward trend in technical analysis (TA).
The pattern consists of two parts: a pole and a “pennant.” This extreme corresponds to the initial upward trend in the asset price. This is exactly the same structure as before the “Integration Phase”.bull flag“.
The difference between a bull pennant and a bull flag is the way assets are consolidated. In a flag, the price moves between two parallel lines, while in a pennant, the price moves between two converging trend lines.
The upper line of the pennant may be a source of resistance, meaning a top may occur there. Likewise, a lower line may support the price.
A breakout of any of these levels could indicate that the trend will continue in that direction; escaping above the pennant is bullish, while a break below the pennant could lead to a bearish outcome.
Like bull pennants, “bear” pennants can also form in asset prices. This pattern operates much like a bull pennant, except that its pole corresponds to the downtrend.
Now, below is a chart shared by analysts showing the bullish pennant that XRP is currently moving within:
As seen above, XRP attempted to retest the upper pennant levels yesterday, but the asset appeared to be rejected as its price has been declining since then. Next, the coin may find support at lower levels ($2.25).
The cryptocurrency is slowly heading towards the top of this pattern, which means a breakout in either direction is possible in the near future. As for which of these two directions is more likely, perhaps history will give the answer.
It’s clear from the chart that this isn’t the first bull pennant the asset has seen in the past month. The first two instances were both found at price bullish breakout. Therefore, XRP may get similar results this time as well.
As for how far the asset might go, Alibaba mentioned a target of $4.40. This is based on the fact that the pennant break is usually the same length as the pole. “We should all pray for a retest of $2.25, buy the dip, target $4.40!” said the analyst.
Ripple price
Following losses over the past day, XRP has plummeted to $2.39 levels.
