XRP Price Analysis: Bull Pennant Signal Impending Breakout

On Monday, the cryptocurrency market experienced a notable increase, with Bitcoin rising by 2% to break the $70k barrier. Following a slow weekend

Bitcoin price rose by 2% on Monday to cross the $70k threshold. After a slow weekend, this development had a positive impact on major altcoins.

Both Ethereum and Solana saw gains of over 3%, trading at $3383 and $190 respectively. XRP also experienced a 1.5% increase, pushing its value over $0.6.

The overall market trend appeared bullish, but the upcoming token release from the escrow wallet could put additional supply pressure on XRP.

A closer analysis of the 4-hr chart revealed the consolidation as a bull pennant pattern, a continuation structure that often hints at a temporary pause before the next market move.

At press time, XRP was trading at $0.61 with a market cap of $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.

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