A cryptocurrency analyst explained how a close of $XRP above a certain level could trigger a run to $4.80, based on a technical analysis pattern. In a new post on X, analyst Ali Martinez cited a technical analysis pattern known as a Parallel Channel to discuss the future of $XRP . Parallel Channels form when the price of an asset observes consolidation between two parallel trend lines. The upper line of the pattern tends to be a source of resistance, while the lower one acts as support. A breakout of either of these levels could imply the continuation of the trend in that direction.
There are different types of Parallel Channels, depending on how the trend lines are oriented in relation to the axes. When tilted upwards, the pattern is known as an Ascending Channel. If they have a negative slope, they form a Descending Channel. In the current context, the most common and relevant type is the Parallel Channel with trend lines parallel to the time axis, corresponding to a true lateral consolidation in the cryptocurrency.
The chart shared by the analyst shows that the weekly price of $XRP has been following a Parallel Channel in recent months. Recently, the weekly price of XRP saw a sharp increase and approached the upper level of the Parallel Channel. If the current trajectory of the asset holds, it may retest the upper line situated around $3. Earlier this year, the cryptocurrency faced resistance at this point, so it is possible that something similar may happen again. However, if it manages to break above this line, a bullish breakout could occur. Martinez states: “A weekly close above $3 could lead XRP to a new all-time high of $4.80!” From the current price of the coin, a run to that target would imply a gain of about 56%.
Furthermore, the weekly price of Ethereum is also approaching the resistance line of a Parallel Channel, as pointed out by the analyst in another post on X. Martinez notes: “A key resistance level for Ethereum $ETH is $3,980. Breaking above this could trigger a major bullish run!” The price of XRP saw a new increase of 7% in the last 24 hours, raising its price to $3.08.
