Analyst Predicts XRP to $6: Unpacking Elliott Waves and Pennants
The analyst, who is identified as “Ahm” on social media platform, has indicated that a technical pattern in conjunction with the Elliott Wave theory suggests a strong probability of a breakout that could drive XRP prices into the range of $5 to $6.
XRP Pennants Formation
Ahm has identified a multi-year pennant formation for XRP. This large-scale symmetrical triangle or pennant pattern has been evolving over several years, with converging trendlines defining a narrowing range in the price action. XRP entered this pattern subsequent to a decline from the all-time high of $3.31 in January 2018. The data confirms that it has remained within the bounds of this pennant, with the upper trendline serving as substantial resistance and the lower trendline offering firm support.
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The chart also demonstrates a gradual decrease in XRP’s volume profile within this pattern, which is typical in pennant formations as the market anticipates a breakout. Ahm’s analysis integrates the Elliott Wave theory and identifies a completed ABC correction pattern in the XRP chart, potentially signaling the commencement of a new impulsive phase. This prospective fifth wave could propel XRP to notable highs. While the immediate area of interest is $4, the confluence of chart patterns and wave analysis suggests that XRP could ascend towards the $5 to $6 range. It’s essential to note that the breakout isn’t guaranteed, and traders should closely monitor for confirmation.
XRP Potential Breakout
Additionally, analyst Flash presented an immediate analysis of XRP’s price action, highlighting a breakout from its macro downtrend, established since the drop from $1.96 in April 2021. The breakout point appears to be near the $0.55 to $0.57 range, with XRP maintaining a position above a crucial support level. Flash emphasized that the 200-week moving average is the final significant obstacle before XRP can target $2.
Both analyses set targets of $2, $4, $5, and $6. However, with XRP currently trading at $0.5907, overcoming essential resistance levels is imperative to approach these targets. Notably, the initial resistance rests on the $0.93 point, aligning with the peak in July 2023.
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Meet Daniel Abang: Crypto guru, content creator, and analyst. With a deep understanding of blockchain, he simplifies complex concepts, guiding audiences through the ever-changing crypto landscape. Trusted for his insightful analysis, Daniel is the go-to source for staying informed and empowered in the world of cryptocurrency.
