XRP’s $4 Breakout Imminent: Here’s What to Expect Next

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At the moment, everyone’s attention is focused on the possible rise in XRP‘s price, as analysts suggest it could reach approximately $4 if a confirmed breakout from a favorable chart pattern occurs.

As an analyst, I’ve observed a potential breakout in XRP. This seems to indicate a bullish trend that could potentially drive the price up towards $4.

$XRP appears to have broken out of a bullish flag pattern, which suggests an upswing to $4!

— Ali (@ali_charts) January 19, 2025

In simpler terms, a bullish flag pattern occurs when the price temporarily pauses its upward climb after a significant rise (the ‘flagpole’). This pause is followed by a period of relatively little price change or even a slight decrease (the ‘flag’). The breakout from this pattern often signals that the uptrend will continue.

As an analyst, I arrived at a projected price of $4 by utilizing the concept of a flagpole’s measured move. This method involves taking the distance between the pole (the two trendlines forming the ‘flag’) and adding it to the breakout point of the pattern. This calculation gives us an estimation of the potential upside in our analysis.

Growing optimism

In the recent week, XRP experienced a significant surge. This growth built upon substantial increases in November and December. Since early November, XRP has seen approximately a 560% increase, and its market value has doubled. Currently, XRP holds the third position among cryptocurrencies, boasting a market capitalization of $180.55 billion.

For the first time since 2018, XRP surpassed the $3 threshold during Thursday’s trading session, peaking at $3.40. This year, it has experienced a significant increase of over 60%. The optimistic outlook for XRP is growing as expectations of a more crypto-friendly Securities and Exchange Commission (SEC) become reality. Currently, XRP is slightly down and is trading at $3.16, marking a 1.63% rise in the last day and a robust 24% increase over the past week.

There’s increasing hope that Exchange Traded Funds (ETFs) based on XRP might become available for trading within the United States, following a protracted court dispute between Ripple and the Securities and Exchange Commission (SEC).

On Wednesday, the Securities and Exchange Commission (SEC) submitted their initial arguments in an appeal concerning a ruling generally in favor of Ripple. However, with a new chair who is supportive of cryptocurrency set to assume office, the outcome of this appeal may become uncertain.

If XRP surpasses the $3.40 mark, it could continue its current uptrend towards $4. Conversely, $2.91 is an important level to keep an eye on for potential downturns; a drop below this point and subsequent close might lead XRP to test its support at $2.59.

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2025-01-19 13:05