XRP Chart Pattern Warns of Incoming XRP Price Swings
2025-01-11
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XRP, the fourth largest cryptocurrency, could be gearing up for significant volatility if a key chart pattern holds. CoinsKid, a market analysis-focused X account, noted in a recent tweet that XRP’s current chart setup might suggest a major price move is on the horizon. Highlighting a pennant forming on the XRP price chart, the analyst added, "There is a move coming here for XRP."
Unfortunately It looks as though #xrp is creating a bear pennant on the daily timeframe. Pennants tend to be continuation patterns.
Compression leads to expansion. There is a move coming here for $xrp ⏳️👀 pic.twitter.com/6mALhpybSA
Pennants are continuation chart patterns that occur after strong moves. After a big upward or downward move, buyers or sellers usually pause to catch their breath before pushing the price in the same direction. Because of this, the price typically consolidates and forms a tiny symmetrical triangle, known as a pennant.
The analyst highlighted in a chart a possible breakout from the pennant pattern that could propel XRP’s price to $4 — a 70% increase from its present value.
XRP price action
XRP continues to trade within a symmetrical triangular pattern, suggesting a balance of supply and demand. At the time of writing, XRP was trading in green amid an ongoing market sell-off, up 1.61% in the last 24 hours to $2.35.
The daily RSI slightly above the midpoint gives a slight edge to the bulls. If the XRP price breaks and closes above the barrier at $2.50, it might spark a rally to $2.72 and then to $2.90. In contrast, a break and close below the support line at the daily SMA 50 at $2.21 might trigger a fall to $1.62.
XRP metrics bullish
A slew of XRP metrics have flipped bullish at 2025's early start. According to the on-chain analytics platform Santiment, the amount of hodlers for various crypto assets has fluctuated wildly since the new year.
XRP saw a 1% increase in holders since 2025's start, adding 58,000 wallets in this span. Santiment highlighted this as bullish, adding that if wallets are rising fast, the community is comfortable with the project for the long term.
Across social media, sentiment has been shifting for crypto's largest market caps. In a recent report, Santiment noted that XRP enjoyed a nice 18% market cap rise in the first three days of the new year and has been holding up quite well compared to other altcoin peers.
Since the massive price surge that saw XRP's value jump 455% (from Nov. 1 to Dec. 2), there has been an increased level of optimism from the crowd. Currently, sentiment is slightly bullish. 