In a recent analysis, crypto analyst Ali Martinez highlighted that XRP has broken out of a descending channel, known as a “bull flag,” offering a bullish indication for the cryptocurrency. The breakout is anticipated to push XRP’s price toward the $4.40 mark, as suggested by Fibonacci extension levels.
The prediction comes after XRP initially surged from $2.3374 to $3.3509 from January 13 to January 17. Following this climb, XRP entered a consolidation phase within a descending channel, which it broke above around $3.20 on January 20.
This breakout aligns with the bull flag pattern, characterized by a steep rise followed by gradual consolidation, usually signaling a likely continuation of the initial uptrend. Analysts forecast a potential price target in the $4.20 to $4.40 range, as depicted in the two-hour Binance chart.
Martinez sees the $4.40 target not only for its alignment with the 1.786 Fibonacci extension level but also as a notable bullish objective. However, for XRP to maintain this upward trajectory, the cryptocurrency must sustain support above $3.20, manage to move past the $3.3509 level, and attract sufficient trading volume.
Despite this optimism, XRP’s inability to hold the breakout saw its price fall back to $3.06 at press time. Therefore, further buying pressure from XRP bulls is required to revalidate the bullish scenario.
