On Monday, the cryptocurrency market experienced a notable increase, with Bitcoin rising by 2% to break the $70k barrier. Following a slow weekend, this resurgence in recovery sentiment positively impacted major altcoins, with Ethereum and Solana seeing over 3% gains, trading at $3383 and $190 respectively. The XRP price analysis saw a 1.5% increase, pushing its value over $0.6. While the overall market trend appears bullish, the forthcoming token release from the escrow wallet could place additional supply pressure on XRP.
XRP Price Analysis: Bull Pennant Signal Impending Breakout
Since mid-July, the XRP price analysis has showcased a sluggish trend resonating within a narrow range of two covering trendlines. The daily chart projects long wick candles with narrow bodies indicating no clear initiation from buyers or sellers.
However, a deeper analysis of the 4-hr chart shows this consolidation as a bull pennant pattern. This continuation pattern hints at the temporary consolidation for XRP before the next leap.
By press time, the XRP price had traded at $0.61, while the market cap had held at $34.1 billion. Despite the bullish narrative, an upcoming release of XRP token by escrow wallet could stall the recovery momentum.
As per the data from XRPScan, the escrow wallet will release 500 Million tokens— worth around $300 Million to circulating supply on August 1. The supply could bolster sellers to breach $0.6 psychological support.
Amid the anticipated pullback, the pennant’s lower trendline and 50 EMA slope from 4 hours may provide suitable support.
Moreover, a potential golden crossover between the 50D and 200D EMA could accelerate the bullish momentum to counter the supply surge.
Breaking above the pennant pattern would indicate that the market has successfully absorbed the newly released XRP tokens, encouraging buyers to target the major resistance trendline established in September 2021. Additionally, a daily RSI reading above 60% suggests that trader sentiment towards XRP remains bullish.
A successful breach above the overhead trendline will signal a major trend reversal and bolster the rally to $0.92, followed by $1.4.
Key Takeaway
The current consolidation in XRP price analysis could be attributed to the delayed settlement in the Ripple Vs SEC court case. Moreover, an upcoming release of XRP tokens by escrow wallet could add additional supply pressure on the asset. Thus, the crypto buyers must watch for a pennant pattern breakout to gain confidence for a potential rally.
The post XRP Price Analysis: Will the $0.6 Support Hold Amid Major Token Release? appeared first on CoinGape.
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