XRP, the cryptocurrency at the center of many bullish predictions, is facing a crucial test as the market turns cautious. Recent technical signals highlight the formation of three consecutive bull pennants, a pattern typically indicating potential upward momentum. However, the current market data suggests that XRP is battling bearish pressure as it approaches a crucial support level.
XRP Prepares for Rally to Hit $4.40
After failing to reclaim its high of $2.9, the cryptocurrency has entered a corrective phase, with its price trending toward the $1.9 support level. On the 4-hour chart, it shows bearish signs, including a move below the 100-day Simple Moving Average (SMA). This shows selling pressure is gradually increasing, which could lead to further declines if the $1.9 support is breached.
The Composite Trend Oscillator on the 4-hour chart shows a critical drop below the SMA, which suggests a potential shift in momentum. The daily chart confirms this sentiment, as a bearish candlestick indicates warning buyer confidence.
After lingering in the overbought zone, the oscillator’s signal line has also moved below the SMA.
According to the prominent crypto analyst, Ali on X highlights “3 consecutive bull pennants”. Despite the current downtrend, analysts remain hopeful that XRP’s $2.25 level could act as a critical retest zone for buyers to step in.
$XRP: 3 consecutive bull pennants! We should all be praying for a retest of $2.25 to buy the dip and target $4.40! pic.twitter.com/KgXnM929yk
— Ali (@ali_charts) December 9, 2024
If the bulls regain control, a rally to $4.40 remains a realistic target. The bullish outlook relies on the ability of key support levels to hold firm, ranging between $1.9 and $1.7.
Also Read: Ripple CEO Brad Garlinghouse on Crypto’s Role in US Politics and XRP’s Vision
Credit: Source link
