XRP Bull Flag Breakout Could Lead Price To $4, Analyst Says
One analyst explained that if the XRP 4-hour price can break out of the recent bull flag pattern, XRP could eventually rise to $4 levels.
XRP has been consolidating within a bull flag pattern recently
in a new postal Over at X, analyst Ali Martinez talked about how XRP’s 4-hour price recently formed a bull flag pattern. this”bull flag” This refers to a pattern in technical analysis (TA), which, as the name suggests, looks like a flag on a pole.
This pattern forms whenever an asset price follows a sharp upward trend and enters a period of downward consolidation. The initial upward move corresponds to the “extreme”, while the consolidation period corresponds to the “flag”.
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In the flag pattern, this consolidation occurs specifically within parallel channels. That is, between the two parallel trend lines that mark successive tops and bottoms in price. When trend lines converge, the pattern is called pennant.
The upper levels of the flag may provide resistance to the price, while the lower levels may act as support. A breakout of any trend line could signal a continuation of the trend in that direction.
A bull flag is considered a continuation pattern, so the probability of a breakout of the resistance level may be higher than the probability of a failure of the support line.
Like the bull flag, there is also a pattern called the bear flag. It works much the same way, except that bars are formed by sharp downward moves, whereas flags represent brief upward consolidation phases.
Now, here’s a chart shared by analysts showing XRP’s recent bull flag moves within:
As shown in the chart above, the 4-hour XRP price has just risen above the bull flag consolidation channel. The asset found rejection when doing the same retest a few days ago, but this could be when it finds a breakout.
However, Martinez noted that in addition to this retest, the cryptocurrency is also witnessing another signal: it’s done Tom DeMarco (TD) Sequence For sale set.
The TD Sequence is a TA indicator that basically points out the likely locations of tops and bottoms in the value of any asset. It involves two phases, the first one is called the setup phase and occurs after the price observes nine candles of the same color.
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XRP has completed this type of TD sequential phase with nine green candles, which means that the indicator now indicates that the coin may reverse the downward trend.
Therefore, analysts believe that the cryptocurrency will first undergo a brief correction before breaking above the $0.246 resistance. The length of a bull flag breakout is likely to be similar to the length of the pole, so based on that, Martinez chose a $4 target for XRP.
Ripple price
At the time of writing, XRP is trading around $2.42, up more than 4% in the past seven days.
Featured image from Dall-E, chart from TradingView.com
