XRP Chart Pattern Warns of Incoming XRP Price Swings

by

As a crypto investor, I’m keeping a close eye on XRP, the fourth-largest cryptocurrency in the market. Recently, CoinsKid, a renowned market analyst, pointed out that the current chart setup of XRP might be hinting at a substantial price shift. They’ve noticed a pennant forming on the XRP price chart and suggested that “a move is coming for XRP.” This potential development could bring significant volatility to XRP’s price.

It seems like there’s a potential bearish continuation pattern forming with #XRP on the daily chart, known as a “bear pennant.” These patterns often indicate that the current trend will continue, in this case, potentially leading to downward movement for XRP. So, stay tuned! 🐻🏃‍♂️👀

— CoinsKid (@Coins_Kid) January 11, 2025

As a researcher, I often find myself studying chart patterns, and one such pattern that catches my attention is the Pennant. This pattern emerges following significant market movements, either uptrends or downtrends. After these powerful moves, there’s usually a pause among buyers or sellers to regroup before resuming their push in the same direction. During this pause, the price action typically consolidates, and a small symmetrical triangle, known as a Pennant, forms. This pattern suggests that the prevailing trend is likely to continue post-consolidation.

In a chart, the analyst pointed out a potential breakout from the pennant formation, which might push the price of XRP up to approximately $4 – representing a significant rise of around 70% compared to its current worth.

XRP price action

Currently, XRP is moving inside a symmetrical triangle, indicating a harmonious equilibrium between buyers and sellers. At this moment, XRP’s price is climbing during a broader market downturn, having increased by 1.61% over the past 24 hours to reach $2.35.

A small increase in the RSI value over the average (midpoint) slightly favors the bulls. If XRP’s price manages to surpass and close above the $2.50 resistance level, it could ignite an upward trend towards $2.72 and potentially even $2.90. Conversely, if the price breaks and closes below the support at the 50-day moving average ($2.21), it may initiate a decline that might extend to $1.62.

XRP metrics bullish

At the beginning of 2025, a significant number of XRP performance indicators have turned positive. As reported by the on-chain analysis platform Santiment, the number of holders for different cryptocurrencies has seen substantial fluctuations since the start of the year.

Over the past few weeks, there has been a growth of approximately 1% in the number of XRP holders since the beginning of 2025. This increase translates to around 58,000 new wallets being added to the network during this period. According to Santiment’s analysis, this trend is considered positive, suggesting that if the number of wallets is increasing rapidly, it indicates that the community is confident and committed to the project for the long term.

On various social platforms, there’s been a noticeable change in public sentiment towards the top crypto market leaders. As per recent findings by Santiment, XRP experienced a significant 18% increase in its market cap during the first three days of the new year and has been performing relatively stronger compared to other prominent altcoins in the same sector.

Following a significant price spike of 455% (from November 1st to December 2nd), which raised XRP’s value, there’s been a noticeable uptick in optimistic feelings among the public. At present, the general sentiment leans slightly towards being bullish.

Read More

2025-01-11 14:24