In a recent post on X, analyst Ali Martinez shared that XRP has recently broken out of the Bull Pennant pattern. Bull Pennant is a technical analysis (TA) pattern that forms when the price of an asset continues to rise sharply with a consolidation phase between two converging trend lines.
Bull Pennant is similar to Bull Flag, with the main difference being that the flag consists of parallel channels. Like in the case of Bull Flag, the initial upward trend forms the 'pole', but the consolidation channel here is called the 'pennant'.
When the price trades within the flag portion of the pattern, it is likely to encounter resistance at the upper level and support at the lower level. A breakout from either of these levels may signal a breakout in that direction.
Bull Pennant is considered a continuation pattern, therefore, the likelihood of a bullish breakout is said to be higher. This means that the asset is more likely to surge above the resistance line.
Similar to Bull Pennant, there is also Bear Pennant. This TA pattern works quite similarly, except that the pole is represented by a downward move and the likelihood of a bearish breakout is higher.
Here is the chart shared by the analyst, showing the weekly price pattern of XRP traded within until recently:
As shown in the chart above, the weekly price of XRP had previously seen consolidation within the Bull Pennant, but this month, the asset finally found a breakout as the price strongly exited the pattern.
Typically, Bull Pennant breakouts are considered to have the same length as the pole. Based on this, the analyst has outlined a potential breakout for the cryptocurrency on the chart. The target it aims for is $15.
If such a bullish rally indeed occurs with XRP, its price could skyrocket by 320%. Currently, it remains unclear whether the Bull Pennant can actually hold the value of this asset.