Recent technical analysis suggests that XRP may be poised for significant price volatility due to the formation of a bear pennant pattern on its daily chart. This pattern, typically indicative of a continuation in the prevailing trend, has been highlighted by the analyst CoinsKid. They note that “compression leads to expansion,” implying that the current consolidation could precede a substantial price movement.
As of January 11, 2025, XRP is trading at approximately $2.35, reflecting a 1.61% increase over the past 24 hours, despite a broader market downturn. The Relative Strength Index (RSI) is slightly above the midpoint, suggesting a marginal advantage for bullish traders. A decisive break above the $2.50 resistance could potentially initiate a rally towards $2.72 and subsequently $2.90. Conversely, a decline below the 50-day Simple Moving Average (SMA) at $2.21 might trigger a drop to around $1.62.
It’s important to note that pennant patterns are generally viewed as continuation signals, emerging after significant price movements when the market consolidates before resuming its prior trend. Given the inherent volatility of the cryptocurrency market, traders should exercise caution and consider multiple indicators before making investment decisions.
Disclaimer: This analysis is for informational purposes only and should not be construed as financial advice. Always conduct your own research before making investment decisions.
Beyond The Coin 
Leave a comment