- XRP forms a bullish pennant, indicating a potential 34% rally if $3.36 resistance is broken.
- Key support at $3.05 and resistance at $3.36 hold the breakout potential for XRP’s price trajectory.
- EMA and RSI signals show bullish momentum, with $4.20 as the projected breakout target.
XRP’s price action is grabbing traders’ attention as it is forming a bullish pennant on the 4-hour chart. This pattern often signals a continuation of an existing trend, suggesting a significant rally, if confirmed.
Currently, XRP trades near $3.16, just below a key resistance level at $3.36. If it breaks out from this formation, the token could surge toward $4.20—a potential 34% gain. The flagpole, representing the initial rally, supports this optimistic view.
Related: XRP Price Prediction: Will ETFs Unlock XRP’s True Potential
Key Indicators: Bullish Momentum Building
XRP trades above both the 100-day and 200-day EMAs, signaling a bullish outlook for the medium-to-long term. The 20-day and 50-day EMAs are huddled near the current price of $3.15, showing consolidation and hinting at a possible breakout.
On the 4-hour timeframe, the RSI is at 50.2, showing neutral momentum. This means XRP has space to move up without being overbought, adding weight to the potential for a bullish breakout.
Related: XRP Prediction for January 24: Is $3 the New Support?
Right now, support sits at $3.05, with stronger backing near $2.90. Resistance levels are at $3.18 and $3.36. If XRP breaks above $3.36, it confirms the bullish pennant pattern.
What Could Happen Next?
A breakout above $3.36 with significant volume could lead to a target of $4.20, a 34% rally from current levels. But, if it fails to hold above $3.05, we could see a pullback toward $2.90.
Traders should keep an eye on the $3.36 resistance. A clear break would confirm bullish momentum. It might be smart to use stop-loss orders below $3.05 and consider taking profits near intermediate levels like $3.80 to limit potential losses.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
