XRP price action shows the formation of a bullish pennant, a technical pattern that suggests a breakout to the upside. Trading at $1.45, the token is expected to rise 37% to reach $2, as predicted by Fibonacci extensions and recent chart performance.
The 4-hour chart shows a consolidation phase after the previous rise of 53.73%, forming a pennant structure. With XRP hovering above the critical 0.618 Fibonacci retracement level at $1.42, the bullish momentum appears intact. A successful break of the pennant’s upper boundary could see the token rise to $1.97, which corresponds to the 1.618 Fibonacci extension level.
Market sentiment further strengthens the bullish sentiment. The recent jump from $1.29 to $1.46 strengthens support zones, and increased trading volume indicates sustained buying interest. Key support levels at $1.356 (0.5 Fib Retracement) and $1.29 (0.382 Fib Retracement) provide a cushion for the downside.
The bullish outlook remains intact as long as XRP holds above these support levels. Traders are now closely watching for confirmation of a breakout that could push XRP towards the $2 target level.
Buying Pressure Strengthens XRP Outlook
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CryptoQuant data shows Binance’s exchange reserves have dropped by more than 500 million XRP since November 13th. This decrease in the availability of cryptocurrency on the exchange signals a decrease in liquidity on the sell side, which is a classic indicator of growing pressure from buyers. As traders withdraw their assets from exchanges, this reflects their confidence in the long-term growth potential of XRP.
On the other hand, Santiment data shows that whales – holders of between 10 and 100 million XRP – have been at the forefront of this accumulation trend. Over the same period, these wealthy investors added more than 700 million XRP to their portfolios, reflecting the growing confidence of institutional investors and whales. Given their influence on the market, whale activity is often seen as a harbinger of strong price movements.
The cryptocurrency’s continued uptrend is consistent with broader positive market sentiment, reinforced by political events such as Donald Trump’s victory in the US presidential election. Since the election, XRP has skyrocketed, posting a monthly gain of over 180%. This backdrop, coupled with technical patterns such as a bullish pennant, reinforces the token’s narrative of continued growth.
At the time of publication, the XRP token was trading at US$1.47, with a market capitalization of US$84.04 billion and a 24-hour trading volume of US$7.72 billion.
