Coinspeaker
XRP Price Analysis: Flag Breakout and Fibonacci Levels Target at $3.82
Despite the massive correction in the crypto market, as Bitcoin
BTC
$92 900
24h volatility:
1.2%
Market cap:
$1.84 T
Vol. 24h:
$31.30 B
has dropped to the $93,500 level and liquidations have risen to nearly $300 million, XRP
XRP
$2.43
24h volatility:
3.6%
Market cap:
$139.76 B
Vol. 24h:
$5.81 B
maintains a stronger position.
XRP Price Triggers Buy Signal
Despite the 1.13% intraday drop followed by the 2.81% drop on Sunday, XRP trades at $2.47. This comes as a retest of the broken resistance trendline in the daily chart.
Based on the broader picture, the resistance trendline was part of a bullish pattern. This pattern is generally considered a trend continuation pattern with substantial price targets.
Hence, the ongoing retest comes as a lucrative buying opportunity for price action traders.
Supporting the bullish trend, the RSI line is sustaining above the halfway level, indicating a positive trend. Furthermore, the crucial exponential moving average lines maintain a positive alignment, adding strength to the bullish outlook.
XRP Price Targets $3.82
Using the trend-based Fibonacci level, the retest fluctuates near the 23.60% level, close to the $2.50 psychological mark. The bullish breakout occurred on Saturday with a bullish engulfing candle of nearly 10%.
Hence, the breakout rally is expected to gain momentum after the retest phase.
The XRP price targets, based on the Fibonacci levels, are $3.42 and $3.82 in the short term. However, XRP price must surpass the $3.42 psychological mark, which acts as a crucial resistance, to sustain its bullish trend.
On the flip side, the crucial support remains the 50 EMA line at $2.10 and the $2.00 psychological mark.
Veteran Chart Master Backs XRP Rally
In a recent X post, Peter Brandt, a veteran technical analyst, highlights a positive signal for XRP. The price chart reveals a bullish breakout of a triangle pattern and XRP crossing the $2.50 psychological mark.
Leader of the pack $XRP pic.twitter.com/mld7fp0vbM
— Peter Brandt (@PeterLBrandt) January 11, 2025
The current pullback, acting as a retest, could showcase a bullish continuation. Meanwhile, the ATR and ADX levels in Peter Brandt’s chart are diverging. The ATR, standing at 0.177, indicates low but slightly rising volatility.
However, the ADX, which has dropped to 15.48, suggests a weakening trend. While the recovering ADR points to a boost in bullish sentiment, the declining ADX highlights a loss of momentum.
Gary Gensler’s Exit to Fuel Bullish Chances
On the fundamental side, the shift in the chairmanship of the US SEC is likely to boost bullish sentiments for XRP. With Donald Trump swearing in on January 19, Gary Gensler is expected to resign in seven days.
This will act as a positive catalyst, increasing speculative trading of XRP and the broader crypto market in the coming days.
XRP is well-positioned for a bullish continuation, with strong technical indicators and promising fundamentals aligning for potential growth. The retest phase and positive momentum, supported by Peter Brandt’s analysis, set the stage for a rally toward $3.42 and beyond.
XRP Price Analysis: Flag Breakout and Fibonacci Levels Target at $3.82
