- Ripple price is struggling at the upper trend line of the bull flag near $0.58.
- A 4-hour candlestick close below $0.50 may extend the pullback.
- However, a close above the supply barrier at $0.56 would indicate a 35% increase in the price.
XRP price has seen a bullish rally of 90% since February 2. After this rally, Ripple started to consolidate, which led to the formation of a bull flag pattern.
XRP Price at a Crossroads
XRP price is forming higher highs and lower lows on the 4 hour chart. The joining of these pivot points using a trend line creates a “flag”, and the 90% rise preceding this is known as the “flag column”.
The four-hour candlestick close above $0.56 marks the end of the continuation pattern and points to a 35% rise to $0.75. This target is measured by adding the length of the flag pole to the breakout point.
XRP declined at $0.58 on February 20, it has been on the decline and is, at the time of writing, testing the $0.50 support level. If the remittance token manages to break through this demand barrier, it is likely to drop 10% to $0.45.
Adding credence to this bearish forecast are the SuperTrend and the Parabolic SAR, both of which flashed sell signals on February 15 and 20, respectively.
4 hour chart XRP / USDT
However, investors should be aware that a rebound from the upper trendline of the channel is possible. Therefore, a rally in buying pressure that leads to a close above the upper trend line of the bullish flag at $0.56 may signal a breakout.
In this case, the price of XRP could rise to $0.75.