XRP has started 2025 on a bullish note, rising over 5% year-to-date to reach $2.46 on January 7. With its positive momentum, XRP may continue its upward trajectory, supported by strong technical indicators and analyst forecasts.
Bull Flag Pattern Sets Up a 70% Rally
XRP’s daily chart reveals a textbook bull flag pattern, which indicates a pause in the cryptocurrency’s upward momentum after a remarkable 105% increase in November and December. The price is now testing the upper boundary of this flag, currently around $2.42. A breakout above this level could confirm the pattern and trigger further upside toward $4.17, representing a potential 72% rally by February.
Technical indicators further support the bullish case for XRP. The relative strength index (RSI) sits at a healthy 60, suggesting that the cryptocurrency has room to climb. Additionally, XRP is holding above its 50-day exponential moving average (50-day EMA) of $2.03, a key support level that reinforces the potential for a breakout.
Peter Brandt’s Half-Mast Flag Targets $6.40
Veteran trader Peter Brandt has a more ambitious outlook for XRP, predicting a market cap surge to $500 billion. This would push XRP’s price to $6.40, based on a half-mast flag pattern. This formation, a consolidation phase in the middle of a strong trend, often signals a bullish continuation. Brandt believes this pattern could complete within six weeks, potentially setting XRP up for an impressive price surge.
Open Interest Surge Strengthens XRP’s Case
XRP’s bullish momentum is further supported by a sharp rise in open interest (OI), which surged to $4.49 billion on January 7. This indicates strong trader confidence in XRP’s future price gains. Historically, such spikes in OI have coincided with significant price surges, with a 107% increase in price observed in July 2023. If history repeats, XRP could see a 100% rise, reaching $4.90 by March.
As XRP continues to form key bullish patterns, the cryptocurrency’s outlook for the coming months remains strong, with analysts projecting substantial gains in the near future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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