Key takeaways:
XRP’s price has been trading between $2.05 and $2.40 over the last month while consolidating in a bull pennant in the weekly time frame.
Several analysts say the current technical setup mirrors the 2017 price action that preceded a massive breakout to all-time highs.
XRP price eyes a 530% rally into double-digits
XRP (XRP) price has been consolidating below $3.00 since Feb. 1. Still, analysts argue that the crypto could see a massive recovery from the current level if it follows a similar breakout as 2017.
Popular crypto analyst Mikybull Crypto said that XRP’s price action in the three-week time frame seems to follow a 2017 playbook where a breakout from a bull pennant led to an over 1300% upward move to all-time highs around $3.40.
“I have seen this movie before,” the analyst said in a June 17 post on X, adding:
“2017 rally vibes coming up.”
The altcoin’s price action follows a similar setup on the weekly time frame, as shown below.
A bull pennant is a bullish continuation setup that forms when the price makes a sharp move higher (the flag pole), then pauses and consolidates in a small symmetrical triangle (the pennant).
Bull pennants typically resolve after the price breaks above the triangle’s resistance line and rise by as much as the previous uptrend’s height. This puts the upper target for XRP price at $14, or a 530% increase from the current price.
Related: Trident Digital to create XRP treasury of up to $500M
These analyses align with previous predictions of XRP reaching $27 based on chart fractals, Elliott wave analysis and Fibonacci extensions. Others believe XRP price could rally by 1,100% to $25 if a spot XRP ETF is approved in the United States.
XRP price needs to reclaim 200-day SMA
XRP’s potential to move higher is part of a recovery that began on April 10 that saw the relative strength index (RSI) rise to 52 at the time of writing from oversold conditions at 29.
XRP bulls are focused on breaking the resistance at $2.27 — the 50-day simple moving average (SMA).
The bullish case for the altcoin hinges on turning the resistance between $2.37 (the 200-day SMA) and $2.65 into new support.
A close above this level will signal another escape break above the 50-day SMA, paving the way for a return to $3.00 or the seven-year high above $3.31.
As Cointelegraph reported, breaking resistance at $2.65 could launch a sustained recovery, which could see the XRP rise above $3.00.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
