XRP is currently displaying a series of three bullish pennant patterns, signaling a potential continuation of its upward trend.
The first pennant appeared after a price increase from $0.80 to $1.20, followed by a period of consolidation before a breakout to the upside.
Subsequently, the second pennant formed as XRP moved from $1.20 to $1.80, exhibiting similar consolidation and breakout behavior.
Now, the third pennant is in play as XRP rose from $1.80 to $2.50 and is currently ranging between $2.25 and $2.60.
Market analysts believe that this pattern could lead to another bullish breakout, potentially propelling XRP towards the $4.40 mark if it manages to surpass the current resistance level.
The $2.25 support level is crucial, offering a potential entry opportunity for buyers looking to capitalize on further upwards momentum.
Positive Technical Indicators Reinforce Bullish Sentiment
At present, XRP remains above the 20-day moving average of the Bollinger Bands, indicating a sustained bullish trend.
While the current candle shows a slight retreat from the upper band, the midline around $1.93 could serve as an additional support level in case of further retracement.
Moreover, momentum indicators are also signaling favorable conditions, with the Relative Strength Index (RSI) sitting at 67.33, reflecting strong upward momentum and nearing overbought levels.
This corrective phase is in line with the recent price pullback, suggesting that XRP might consolidate before resuming its upward movement.
Furthermore, the MACD indicator supports this positive outlook, as the MACD line remains above the signal line despite a minor contraction in the histogram bars, indicating the overall bullish trend remains intact.
Mixed Sentiments Reflected in Derivatives Data
Derivatives data indicates a surge in market activity, with XRP’s trading volume increasing by 13.86% to $16.44 billion, and options volume rising by 17.41%, showcasing heightened speculative interest.
Additionally, Options Open Interest saw a 16.20% uptick, suggesting a growing confidence level among traders.
However, Open Interest in perpetual contracts experienced a 3.89% decline, implying that some traders were closing their positions.
On another front, the Long/Short Ratio displays a bullish inclination, with Binance reporting a ratio of 3.76 and OKX at 2.31.
Over the last 24 hours, significant liquidations amounting to $21.31 million were recorded, indicating increased volatility, predominantly affecting long positions with $13.37 million compared to $7.94 million in shorts.
With a robust uptrend, critical support levels holding strong, and a consistent trading environment, XRP appears primed for a potential breakout in the near future.