A closely followed crypto analyst says payments-focused altcoin XRP is potentially forming a bullish technical pattern that could lead to an exponential breakout.
Ali Martinez tells his 108,000 followers on the social media platform X that XRP is trading within a large bull pennant – a bullish continuation pattern where a period of consolidation is often followed by a breakout
“XRP is still consolidating within the pennant of a massive bull pennant pattern. Until the $2.73 resistance is broken, a pullback to $2.05 remains possible before a potential breakout to $11!”
Using Fibonacci extensions, Martinez appears to forecast that XRP will drop to its support at $2.05 before launching a staggering 436% rally toward his upside target.
At time of writing, XRP is trading at $2.42.
Looking at Bitcoin, the trader says that he’s remaining cautiously optimistic due to the potential of BTC forming a potential head-and-shoulders structure – a bearish technical pattern that sometimes precedes a price breakdown.
“I’m cautiously bullish because for all we know, Bitcoin BTC could be forming a head-and-shoulders pattern that anticipates a correction to at least $78,000. This is why a strong close above $100,000 is crucial to invalidate this bearish setup.”
Based on the trader’s chart, he seems to predict that Bitcoin can drop below $80,000 if the bearish pattern materializes.
At time of writing, Bitcoin is trading at $98,536, sideways on the week and 9% down from its all-time high.
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Generated Image: Midjourney
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