A cryptocurrency analyst has explained how XRP could see a bounce to $3 or even $3.15 based on this technical support level holding.
XRP Has Found Support At The Lower Level Of A Parallel Channel
In a new post on X, analyst Ali Martinez has talked about where XRP could be heading next based on a technical analysis (TA) pattern forming in its 4-hour price chart. The pattern in question is a Parallel Channel, which forms whenever an asset observes consolidation between two parallel trendlines. The upper level of the pattern provides resistance, while the lower one supports.
A breakout of either of these trendlines can imply a continuation of the trend in that direction. That is, a surge above the channel can be a bullish signal, while a drop under it is a bearish one. There are a few different types of Parallel Channels, but the one that XRP has been traveling inside recently is the simplest variant: a Parallel Channel that’s parallel to the time-axis.
Below is the chart shared by Martinez that shows how XRP’s 4-hour price has been moving relative to the pattern during the last couple of months.
From the graph, it’s visible that XRP fell slightly below the support level of the Parallel Channel during last week’s price dip. The asset has since recovered back above the line, however, indicating that support may not have been lost just yet. This is a pattern that the cryptocurrency has shown with this Parallel Channel a few times already. Each time, successfully reclaiming the level was followed by a surge in the asset’s price.
XRP has been on the way up since re-entering the channel, so it’s possible that the same script could be in play once more. As for where the coin may be heading next, the analyst has suggested that the bounce could lead to $3, around one-fourth of the way into the channel, or even $3.15, situated at about the halfway point.
It now remains to be seen whether the renewed bullish momentum will continue for the cryptocurrency and a rally to one of these targets will happen, or if another setback will take place.
XRP isn’t the only altcoin that has found support at the lower boundary of a Parallel Channel recently. As Martinez has pointed out in another X post, Stellar (XLM) may also be traveling up the channel following a bounce off the support line.
As displayed in the above chart, the eventual target for Stellar may be $0.41, corresponding to the resistance line of the Parallel Channel.
XRP Price
At the time of writing, XRP is trading around $0.285, up 2.5% over the last 24 hours.
