Baku: XRP’s price has been trading between $2.05 and $2.40 over the past month, consolidating in a bull pennant on the weekly time frame. According to APA, citing Cointelegraph, several analysts suggest that the current technical setup is reminiscent of the 2017 price action that led to a significant breakout to all-time highs.
According to Azeri-Press News Agency, where a breakout from a bull pennant resulted in an over 1,300% increase to all-time highs around $3.40. “I have seen this movie before,” the analyst remarked in a June 17 post on X, expressing optimism about the potential for a similar rally.
A bull pennant, typically a bullish continuation pattern, forms when the price experiences a sharp increase (the flag pole) and then pauses to consolidate in a small symmetrical triangle (the pennant). Bull pennants usually resolve when the price breaks above the triangle’s resistance, potentially leading to a rise equal to the height of the previous uptrend. This setup places the upper target for XRP’s price at $14, representing a 530% increase from its current level.
These analyses align with previous predictions of XRP reaching $27, based on chart fractals, Elliott wave analysis, and Fibonacci extensions. Some analysts suggest that XRP’s price could surge by 1,100% to $25 if a spot XRP ETF is approved in the United States.
The potential for XRP’s price to rise significantly is part of a recovery trend that began on April 10, with the relative strength index (RSI) increasing from oversold conditions at 29 to 52 at the time of writing. XRP bulls are currently focused on overcoming the resistance at $2.27, which corresponds to the 50-day simple moving average (SMA).
The bullish outlook for XRP hinges on turning the resistance between $2.37 (the 200-day SMA) and $2.65 into new support. Achieving a close above this level would signal a breakout above the 50-day SMA, paving the way for a return to $3.00 or even surpassing the seven-year high of $3.31. As reported by Cointelegraph, breaking resistance at $2.65 could trigger a sustained recovery, potentially pushing XRP above $3.00.