XRP Breaks Out Of Bull Flag And Targets $4.40: Crypto Analyst
In a chart shared by cryptocurrency analyst Ali Martinez, XRP has broken out of a descending channel that is often considered a “bull flag,” indicating that its recent uptrend may continue. Based on Fibonacci extension levels, this move sets the stage for a push towards $4.40.
XRP Price Outlook $4.40
According to Binance two-hour chart ifXRP initially rebounded from around $2.3374 on January 13 to a local high of $3.3509 on January 17, marking a rapid rise that established the so-called flagpole. After reaching a local high of $3.3509, the price entered a consolidation phase, moving within a downward sloping channel from January 17 to January 19 and briefly fell below the 0.786 Fibonacci retracement level at $3.1021 before rebound.
A breakout of the channel upper limit (which occurred on January 20 at around $3.20) is considered a classic confirmation of a bull flag pattern. The bull flag pattern consists of two key components: a rapid, nearly vertical rise (the flagpole) and a subsequent, more gradual consolidation (the flag). When an asset’s price closes significantly above the flag’s upper trendline, traders This is often interpreted as a signal that the previous uptrend may be resuming.
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In this particular setup, the distance from the flagpole was measured from the swing low of $2.3374 to the swing high of $3.3509, which would have produced a gain of approximately $1.01. The analysts then add that distance to a breakout level near $3.20 to get a price target closer to the $4.20 area.
However, Martinez’s chart also includes Fibonacci extensions, which provide more granular potential targets, anchored at 0% ($2.3374) and 1 ($3.3509). These extensions cost 1.272 ($3.6958), 1.414 ($3.8889), 1.618 ($4.1863), and 1.786 ($4.4475). Analysts see $4.40 as major bullish targetclosely aligned with the 1.786 extension level.
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According to Martinez’s chart, XRP is trading near $3.29, hovering just below its local high of $3.3509. If the cryptocurrency is able to hold above the breakout zone and eventually move above $3.3509, the technical side of the chart suggests that the cryptocurrency could climb towards a continuous extension level of $3 and eventually to $4.40.
The importance of the $4.40 target lies in its fusion of Fibonacci analysis with classic bull flag forecast moves, providing traders with a clear upside sign to watch for continued momentum. While short-term fluctuations are always possible in the volatile cryptocurrency market, breakthrough The flag consolidation provides a clear bullish signal, depending on whether XRP can sustain support near $3.20 and build enough volume to break above the $3.3509 threshold.
Notably, XRP was unable to defend the breakout. At press time, XRP fell back into the channel and was trading at $3.06. Therefore, XRP bulls need to step up their efforts once again to revalidate this scenario.
Featured image created using DALL.E, chart from TradingView.com
