Ripple (XRP) price action sees its price action further respecting a longer-term pennant that has been there for over a month. Last week was a perfect test on the low and the high barriers, and again this week, price action looks set for a breakout next week. Seeing the technical death cross with the 55-day Simple Moving Average (SMA) below the 200-day SMA, all the moving parts of the geopolitical backdrop, and the FED FOMC meeting next week, plenty of triggers or catalysts with more tail risk and headwinds than tailwinds.

Ripple price traverses a bull flag continuation pattern, a breakout from which hints at a continuation of the uptrend. This technical formation contains an impulsive move higher followed by a consolidation in the form of a pennant.

The 55% rally between February 3 and 8 formed a bullish flag pole continuation pattern, and the consolidation that ensued in the form of lower highs and higher lows created the pennant. Together, the bullish setup forecasts a 31% ascent for XRP price, obtained by adding the flag pole’s height to the breakout point from the pennant.

On March 11, Ripple price broke out from the pennant, signaling the start of the 31% uptrend to $1. So far, the retest seems to be holding up well, so investors can expect the remittance token to continue its journey higher to the $1 psychological level.

A daily candlestick close below the immediate demand zone, ranging from $0.689 to $0.705, will create a lower low and invalidate the bullish thesis for Ripple price.

In such a case, XRP has the twelve-hour demand zone, extending from $0.546 to $0.633 to support any residual selling pressure.

XRP is Expected to Provide a Bullish Breakout

farhan fazal

Mar 15 2022