XRP price could rally towards $1.40 if bulls can break past $0.85
- XRP price is still respecting the weekly trend line.
- A breakout past $0.85 could send Ripple price towards $1.40
- Breaching $0.725 would invalidate the bullish idea
XRP price is still looking bullish despite last week's failure to stay above the weekly consolidation line. A 10% bounce from the current price of $0.77 could send Ripple price an additional 67% higher.
XRP might be forming a pennant.
XRP price has failed once again to close below the weekly trend line on the 12-hour chart. Price is currently consolidating below last week’s breakout level at $0.80 which has investors playing it safe.
XRP price is also unfolding in a pennant-like manner. Elliott Wave Theory suggests that the low of a pennant into the apex can be used to forecast future price targets. The unfolding pennant has a value of 67% from low to high. This means If bulls can push past $0.85, it is likely XRP price will see a spike into the $1.40 zone.
Despite the wedging-like price action, XRP price can still invalidate the bullish idea. A break below $0.725 will likely mean more downside pressure into the $0.67-$0.62 supply zone, up to a 15% drop.
The bears should keep in mind that the overall trend is still very bullish for XRP price. Price action in the $0.62 supply zone could still result in a bullish triangle pattern to form later down the road.
Author
FXStreet Team
FXStreet
