- XRP price is forming a bull flag pattern on the 4 hour chart, which indicates that a breakout is in progress.
- If Ripple manages to break out of the resistance at $0.56, a 35% rally is likely.
- A rejection from this important barrier will lead to a pullback to the four-hour 100 EMA at $0.49.
XRP is trading at $0.55 at the time of writing, on hopes of rising buying pressure that could lead to it heading to greener pastures.
XRP price ready to launch
XRP price is currently moving inside the bull flag. The 55% increase seen between February 10 and 13 made up the “flagpole”, while strengthening since then led to the development of the “flag”.
This continuing pattern is forecasting a 35% rally on the break of the upper trendline of the pennant at $0.56. Hence, a decisive 4-hour candle close above this price barrier is necessary for XRP price to realize its bullish potential.
In the event of a breakout, the price of XRP will target $0.72.
4 hour chart XRP / USDT
While this looks bullish, a failure to break the supply barrier at $0.56 could lead to a 10% pullback. If this happens, the price of XRP will drop to the four-hour 100 moving average at $0.49 in search of support.
The short-term bearish forecast is validated by a 40% drop in the Ripple Development Activity Index since February 15th. Market participants may interpret this sharp drop as a sign that the developer team behind this project has made no effort to hone and improve XRP. network.
XRP Development Activity
Depending on the focus of buyers or sellers at the 100 four-hour moving average, Ripple could take another hit at the $0.56 resistance or slide to the 200 four-hour moving average at $0.40.