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A cryptocurrency analyst has explained how an XRP close above this level could trigger a run to $4.80, based on a technical analysis pattern.
XRP Could See A Surge To New Highs If It Manages This Weekly Close
In a new post on X, analyst Ali Martinez has cited a technical analysis (TA) pattern to talk about where XRP can go next. The pattern in question is a Parallel Channel.
Parallel Channels form whenever an asset’s price observes consolidation between two parallel trendlines. The upper line of the pattern is likely to be a source of resistance, while the lower one that of support. A break out of either of these levels can imply a continuation of trend in that direction.
There can be different types of Parallel Channels, depending on how the trendlines are oriented with respect to the axes. When they are slopped upwards, the pattern is known as an Ascending Channel. Similarly, them having a negative slope makes the formation a Descending Channel.
In the context of the current topic, the third and the most ordinary type is of relevance: a Parallel Channel with trendlines parallel to the time-axis. This pattern corresponds to true sideways consolidation in the cryptocurrency.
Below is the chart shared by the analyst that shows the Parallel Channel that the 1-week price of XRP has seemingly been following during the last few months.
As is visible in the graph, the weekly XRP price has observed a sharp surge recently and closed in on the upper level of the Parallel Channel. If the asset’s current trajectory maintains, it could end up making a retest of the upper line situated around $3.
Earlier in the year, the cryptocurrency encountered resistance at the mark, so it’s possible that something similar could occur this time as well. In the event that it is able to surge past the line, however, a bullish breakout might take place.
“A weekly close above $3 could send XRP to a new all-time high of $4.80!” says Martinez. From the current price of the coin, a rally to this target would imply a gain of about 56%.
It now remains to be seen whether the digital asset will manage to escape out of the Parallel Channel and if it does, whether a bull run of this magnitude would follow.
In some other news, the 1-week price of Ethereum is also heading toward the resistance line of a Parallel Channel, as the analyst has pointed out in another X post.
“A key resistance level ahead for Ethereum $ETH is $3,980,” notes Martinez. “Breaking above it could ignite a major bull rally!”
XRP Price
XRP has seen a fresh 7% surge in the last 24 hours that has taken its price to $3.08.
