XRP is on the move, breaking out of two technical patterns. This indicates a possible rally toward the $4 mark.
As of January 28, XRP (XRP) has surged about 58.50% year-to-date, reaching $3.19. This growth includes some short-term corrections, like the recent dip caused by a market sell-off in China.
Let’s dive into what this means for XRP's future.
XRP Bull Flag Breakout Targets $4
XRP has surpassed a key resistance level. This confirms a bull flag breakout on the 4-hour chart. Traders are now looking at a potential move toward $4.00.
Here are some key points:
- Bull flags are bullish continuation patterns. They resolve when the price breaks above the upper trendline, possibly rising as much as the previous uptrend. XRP has been forming a bull flag since mid-January and was trying to close above its upper trendline as of January 28.
- If XRP breaks out successfully, it could reach $4.00 by March, which is a 28% increase from current levels.
- However, if it retreats from the upper trendline, the price might drop to around $2.75, aligning with the 200-4H exponential moving average.
- The relative strength index (RSI) for XRP is currently at 56. This neutral position suggests there’s room for more upside in the coming days.
XRP Liquidation Heatmap Shows Key Targets
The Binance XRP/USDT liquidation heatmap highlights important liquidity zones. These areas are where large liquidation events might happen, influencing price direction.
Here’s what to know:
- A significant concentration of liquidations appears near the $3.30 level. This area indicates a cluster of leveraged positions, making it a critical resistance point.
- If XRP clears the $3.30 level, it could trigger a liquidation squeeze. This would force short sellers to close their positions, pushing prices toward $3.37, the next major liquidity cluster.
XRP Bull Pennant Points to a Strong Rally
XRP is entering the breakout stage of a longer-term bull pennant pattern. This suggests a strong bull run by 2025.
Bull pennants form when the price trades within a triangle-like pattern after a strong uptrend. They resolve when the price breaks above the upper trendline, potentially rising as much as the previous uptrend’s length.
As of January 28, XRP is poised for a potential bull run toward $14.45 by 2025. It has already surpassed the 1.618 Fibonacci level at $3.03, with the next target at 2.618 being $4.82. If momentum continues, XRP could reach the 4.618 extension at $8.39 and the full breakout target of $14.44. Currently, XRP is well above its 50-week EMA ($1.25) and 200-week EMA ($0.73), reinforcing the bullish trend.
Bearish Divergence Could Impact XRP's Outlook
While XRP's price continues to rise, the RSI is trending lower. This creates a bearish divergence.
Here are the key takeaways:
- A bearish divergence suggests that buying momentum is weakening, even as prices rise. This increases the chance of a short-term pullback or consolidation before the uptrend can continue.
- Dropping below the current support level of around $2.90—aligned with XRP’s 1.68 Fibonacci retracement level—could confirm this bearish outlook. If XRP falls below $2.90, key price targets would be the next Fibonacci levels around $1.91 and $1.57.
XRP Fundamentals Remain Strong
XRP’s solid fundamentals support a continued rally into 2025, especially with Ripple expanding into key U.S. states.
Traders often step in during price dips, showing confidence in future gains. There’s optimism that Donald Trump’s presidency could resolve the ongoing “SEC vs. Ripple lawsuit,” paving the way for spot XRP ETFs in 2025.
Ripple CEO Brad Garlinghouse is actively lobbying for a diversified U.S. crypto reserve under the Trump administration. On January 28, Ripple secured Money Transmitter Licenses in New York and Texas.