The analyst explained how XRP could eventually reach the $4.40 price target based on the bull pennant pattern formed by its 4-hour price.
XRP Just Showed Its Third Straight Bullish Pattern
In a new post on X, analyst Ali Martinez discussed the bull pennant patterns that have formed for XRP recently. A “bull pennant” refers to a formation from technical analysis (TA) that occurs after a stock shows consolidation within a triangle following a sharp uptrend.
The pattern is made up of two parts: the pole and the ‘pennant.’ The pole corresponds to the initial increase in the value of the asset. This is the exact same type of structure that precedes the assembly phase in the “bull flag.”
When the bull pennant separates from the bull flag it is about how the asset consolidation happens. In a flag, the price moves between two parallel lines, while in a pennant, it is between two variable lines.
The top line of the pennant is likely to be a source of resistance, which means that a top is likely to occur on it. Similarly, the bottom line may support the price.
A breakout of any of these levels would suggest a continuation of the trend in that area; escaping above the pennant is bullish, while falling below it can lead to a bearish result.
Like a bull pennant, a ‘bear’ pennant can also build on the price of an asset. This pattern works much like a bull pennant, except for the fact that its pole corresponds to a downtrend instead.
Now, here is a chart shared by an analyst that shows the bull pennant that XRP is moving in now:
As seen above, XRP attempted to retest the pennant high yesterday, but the asset appears to have received a rejection as its price has declined since then. It is possible that the coin could find support at the next low, which is found at $2.25.
The cryptocurrency is slowly moving towards the top of the pattern, which means that a break in either direction could be on the cards in the near future. As to which of these two directions is more likely, perhaps history may hold the answer.
From the chart, it is clear that this is not the first pennant the asset has shown during the last month. Both of the previous two situations ended with the price finding a bullish exit. So, XRP can get the same result this time.
As for how far a break could take the stock, Ali mentioned a target of $4.40. This is based on the fact that pennant breakouts are usually the same length as the pole. “We should all be praying for a $2.25 rebound to buy the dip and target $4.40!” said the commentator.
XRP price
Following its decline during the previous day, XRP fell to the $2.39 level.
