A cryptocurrency analyst has explained how XRP could see a bounce to $3 or even $3.15 based on this technical support level holding.
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.
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.
As displayed in the above chart, the eventual target for Stellar may be $0.41, corresponding to the resistance line of the Parallel Channel.
At the time of writing, XRP is trading around $0.285, up 2.5% over the last 24 hours.
