XRP Bull Flag Breakout May Target $4 Price Level
An analyst has indicated that XRP could reach the $4 level if its 4-hour price breaks out of a recent bull flag pattern.
XRP Consolidation in a Bull Flag
Analyst Ali Martinez discussed on X how XRP's 4-hour price has been forming a Bull Flag. This technical analysis pattern consists of a sharp uptrend followed by a consolidation phase, where the uptrend represents the 'pole' and the consolidation forms the 'flag.'
In bull flag patterns, consolidation occurs within parallel trendlines that mark successive price tops and bottoms. If these trendlines converge, the formation is referred to as a pennant. The upper trendline may act as resistance while the lower trendline serves as support. A breakout above the resistance line generally indicates a continuation of the upward trend.
A bull flag is a continuation pattern, suggesting a higher probability of breaking above resistance than falling below support. Conversely, a bear flag features a downward pole with consolidation upwards.
The chart below illustrates the bull flag that XRP has recently formed:
The chart shows XRP's 4-hour price nearing the upper level of the bull flag channel. Previously, this level caused rejection, but a breakout may occur now. Martinez noted that alongside this retest, XRP completed a Tom Demark (TD) Sequential sell setup, indicating potential reversal points in asset value.
The TD Sequential involves two phases, starting with a setup after nine candles of the same color. XRP has completed this setup with nine green candles, signaling a possible downside reversal. Therefore, the analyst anticipates a brief correction before XRP attempts to break above the $0.246 resistance. Given the length of the pole, Martinez projects a potential target of $4 for XRP.
XRP Price
Currently, XRP is priced at approximately $2.42, reflecting a more than 4% increase over the past week.
