The XRP price is poised to surge as it breaks free from multiple technical formations, setting its sights on a significant upward push towards the $4 mark.
XRP has experienced a significant year-to-date increase of approximately 58.50%, reaching a value of $3.19 as of January 28. This upward trend has been punctuated by short-term fluctuations, including a notable 10-20% downturn triggered by the recent market sell-off on China’s DeepSeek platform.
Let’s assess whether the XRP price has potential to rise more in the short run.
XRP’s bullish flag pattern breakout aims for $4
XRP has broken through an important level of resistance, indicating a successful breakout from a bullish flag pattern on the 4-hour chart. Based technical analysis, there is a possibility of additional upward movement, and traders are watching for a potential rise towards the $4.00 threshold.
Important things:
- Bull flags are patterns that signal a likely continuation of an upward trend in the market. These patterns typically end when the price breaks above the upper trendline and increases by a similar amount as the previous uptrend.
- Since mid-January, XRP has been developing a bullish flag formation, and as of January 28, it was making a push to break out above its resistance line.
- If the price manages to break out successfully, it could potentially increase from its current value.
- If XRP’s price pulls back from the upper resistance level, it may decline to the lower support level near $2.75, which coincides with the 200-period 4-hour exponential moving average, as indicated by the blue line on the chart.
- The RSI for XRP is currently sitting at 56, a midpoint reading that indicates a balance between buying and selling pressure, leaving potential for further gains in the near future.
The XRP liquidation heatmap indicates that the next potential targets are in the range of $3.30 to $3.37.
The liquidation heatmap for Binance’s XRP/USDT shows important areas of liquidity where significant liquidation events could happen. These zones serve as attraction points, impacting the price movement depending on the liquidity available at each level.
Important information to understand:
- There is a notable the number of liquidations close to the $3.30 mark, particularly within the yellow region where numerous leveraged positions are concentrated. This cluster of positions signifies a significant hurdle that needs to be surpassed, as it acts as a key resistance level.
- A break above $3.30 could trigger a rapid price surge, as short sellers scramble to cover their losses, potentially propelling the price upward to the key resistance level of $3.37, where significant buying interest is concentrated.
XRP’s bullish pennant pattern suggests a potential 365% surge in value by the end of the year.
XRP has reached the breakout phase of its extended bullish pennant formation, with expectations of a significant bullish trend in 2025.
- A bull pennant forms when the price consolidates within a triangular formation after a significant upward price movement, and it is confirmed when the price surges above the upper boundary of the triangle, often resulting in a rally that matches the magnitude of the preceding uptrend.
- By January 28, XRP had transitioned into the pattern’s breakout phase, setting its sights on a possible upward surge that could reach $14.45 by 2025.
- Has broken through the key 1.618 Fibonacci level at $3.03, shifting attention to the next target at $4.82. Sustained momentum could propel the price even higher, reaching the 4.618 extension target of $14.44.
The current XRP price has surpassed its key long-term moving averages, with the 50-week average at $1.25 and the 200-week average at $0.73, further solidifying the upward trend and indicating sustained buying pressure.
