Peter Smith
⬤ XRP is showing strong technical structure after bouncing back above its key support zone, now consolidating within a bullish pennant formation. The price has climbed back above the blue horizontal support band and is currently trading near 2.23 USDT while squeezing between two converging trendlines. This compression indicates the asset is building up for its next major move.
⬤ The support area that XRP recently reclaimed had previously served as a reliable reaction point during multiple retests. After a sharp rally in late November, the price entered a consolidation phase that's now forming a classic pennant pattern. The upper and lower trendlines clearly define this tightening range, and if XRP manages to break above the upper boundary, the pattern suggests a continuation of the uptrend. This technical formation looks clean and follows textbook patterns.
⬤ The pennant structure developed right after an impulsive upward move, which is typical for continuation patterns. Active traders might view the current setup as a potential breakout opportunity, especially given how tightly the price is coiling between the trendlines. XRP's ability to hold above the reclaimed support zone adds credibility to this bullish formation.
⬤ This setup is significant because XRP is approaching a critical decision point where a breakout could reshape near-term market sentiment. A successful break above the pennant's upper trendline would confirm strengthening buying pressure and likely fuel further upside momentum. However, if the price fails to hold the support level, the bullish pattern could lose its validity and shift market expectations.
Peter Smith
