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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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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